Japanese investors snap up foreign long-term bonds as tech stocks slide
TLT•Japanese investors bought a net 1.31 trillion yen ($8.31 billion) of foreign long-term bonds in the week ended October 31, ending a six-week selling streak. Foreign investors bought 2.36 trillion yen of Japanese bonds, the largest amount since March 21.
1. Bond buying returns
Japanese investors bought a net 1.31 trillion yen ($8.31 billion) of foreign long-term bonds in the week ended October 31, their first net purchase in seven weeks. They had withdrawn a combined 3.51 trillion yen over the prior six weeks, and sold a net 209.3 billion yen of foreign short-term bills.
2. Foreign flows into Japan
Foreign investors bought 2.36 trillion yen of Japanese bonds, the largest amount since March 21, including 1.48 trillion yen of long-term bonds and 874.7 billion yen of short-term bills. Japanese investors also bought 1.08 trillion yen of foreign stocks, extending their weekly buying streak to three weeks, while foreign investors bought 1.13 trillion yen of Japanese stocks.
3. Stocks and annual flows
The article linked the move toward safety to a technology-stock selloff and the Federal Reserve holding rates steady. The Nasdaq Composite fell 2% last week and another 5.52% on Thursday, while the Nikkei had lost about 6.14% so far that week. Japanese investors remained net sellers of foreign fixed-income instruments for the year, with withdrawals of 4.38 billion yen.
