Japanese Investors Snap Up Overseas Bonds as Foreigners Sell JGBs

Japanese Ministry of Finance data for the week ended 4 July show domestic investors sharply increasing purchases of overseas bonds to ¥1.66 trillion, up from just ¥183 billion the previous week. At the same time, they turned net sellers of overseas equities, unloading ¥513 billion after having bought ¥191 billion a week earlier. Foreign investors reversed course on Japanese bonds, registering net sales of ¥165 billion following ¥1.05 trillion of net purchases the prior week. They remained net buyers of Japanese equities, though inflows eased to ¥612 billion from ¥651 billion. The shifting flows came as benchmark 10-year Japanese government bond futures slipped 0.04 point in early Friday trading, reflecting investor caution over the domestic inflation and interest-rate outlook.