Japanese investors become net buyers of foreign bonds for the first time in three months
TLT•Japanese investors bought a net 493.9 billion yen ($3.13 billion) of foreign bonds in October, their first monthly net purchase since July, and a net 1.46 trillion yen of foreign stocks.
1. October bond purchases
Japanese investors bought a net 493.9 billion yen ($3.13 billion) of foreign bonds in October, including 457.2 billion yen of long-term bonds and 36.7 billion yen of short-term bills. The long-term purchases were the most since May.
2. Yields and other flows
The US 10-year Treasury yield fell 36.4 basis points in October after reaching 5.3645% on October 7, its highest since April 2002. Japanese investors also bought a net 1.46 trillion yen of foreign stocks, their largest monthly net investment since March, but have sold a net 4.16 trillion yen of foreign debt this year.
3. Investor breakdown
Life insurers bought 62.3 billion yen of foreign long-term bonds, ending a four-month selling streak. Trust accounts purchased 777.4 billion yen, while banks’ net selling eased to 833.5 billion yen. Separately, Bank of Japan data showed Japanese investors sold 6.06 trillion yen of US bonds and bought a combined 719.49 billion yen of European bonds in the first nine months of the year.
