Global Market: Japanese investors extend foreign bond selling streak to six weeks
Japanese investors extended their selling streak in foreign long-term bonds to six weeks, although falling US Treasury yields slowed outflows. Meanwhile, they increased short-term bill purchases and foreign stock investments, while overseas invest...
By Anupam Nagar, ETMarkets.com |
Reuters
Falling US yields ease Japanese bond selling, while investors continue to favour equities.
Japanese investors continued to reduce their holdings of foreign long-term bonds for a sixth consecutive week through October 24, although a recent decline in US Treasury yields slowed the pace of selling, Ministry of Finance data showed.
Investors sold a net 92.6 billion yen ($586.56 million) of foreign long-term bonds during the week, marking their smallest weekly net sales in six weeks. Meanwhile, they purchased a net 235.3 billion yen of short-term bills, reversing net sales of 136.9 billion yen in the previous week, the data showed.
The benchmark 10-year US Treasury yield, which climbed to a 24-1/2-year high of 5.3645% earlier this month, has since declined by around 37.2 basis points.
Read more: Global Market: China’s yuan hits four-year high against dollar after Fed holds rates
According to Reuters, market participants have been monitoring Japanese investors' selling of global fixed-income assets to assess whether rising domestic yields are encouraging a significant repatriation of funds, with potential implications for both Japanese and overseas markets.
Japanese investors have sold a net 5.27 trillion yen of foreign long-term bonds so far this year, the highest net selling for the corresponding period since 2022.
In equities, Japanese investors purchased a net 288.1 billion yen of foreign stocks, extending their buying streak to six weeks out of the past seven.
Read more: Global Market: South Korean shares fall 2% as Samsung Electronics slides after earnings
Foreign investors also returned to Japanese equities, injecting a net 1.18 trillion yen during the week, reversing marginal outflows of 67.5 billion yen in the previous week. The Nikkei's low of 61,462.61 last week held just above its 200-day exponential moving average of around 61,367.
Foreign investors purchased a net 43.3 billion yen of Japanese long-term bonds during the week, the lowest inflow in four weeks. Meanwhile, Japanese short-term bills recorded a second consecutive week of net foreign outflows, totalling 1.18 trillion yen, Reuters reported.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)
Investors sold a net 92.6 billion yen ($586.56 million) of foreign long-term bonds during the week, marking their smallest weekly net sales in six weeks. Meanwhile, they purchased a net 235.3 billion yen of short-term bills, reversing net sales of 136.9 billion yen in the previous week, the data showed.
The benchmark 10-year US Treasury yield, which climbed to a 24-1/2-year high of 5.3645% earlier this month, has since declined by around 37.2 basis points.
Read more: Global Market: China’s yuan hits four-year high against dollar after Fed holds rates
According to Reuters, market participants have been monitoring Japanese investors' selling of global fixed-income assets to assess whether rising domestic yields are encouraging a significant repatriation of funds, with potential implications for both Japanese and overseas markets.
Japanese investors have sold a net 5.27 trillion yen of foreign long-term bonds so far this year, the highest net selling for the corresponding period since 2022.
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In equities, Japanese investors purchased a net 288.1 billion yen of foreign stocks, extending their buying streak to six weeks out of the past seven.
Read more: Global Market: South Korean shares fall 2% as Samsung Electronics slides after earnings
Foreign investors also returned to Japanese equities, injecting a net 1.18 trillion yen during the week, reversing marginal outflows of 67.5 billion yen in the previous week. The Nikkei's low of 61,462.61 last week held just above its 200-day exponential moving average of around 61,367.
Foreign investors purchased a net 43.3 billion yen of Japanese long-term bonds during the week, the lowest inflow in four weeks. Meanwhile, Japanese short-term bills recorded a second consecutive week of net foreign outflows, totalling 1.18 trillion yen, Reuters reported.
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(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)
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