Forex – Japanese investors continued to be net buyers of foreign bonds in the week ending August 31.
According to data from Japan’s Ministry of Finance, the Japanese bought 1.64 trillion yen ($11.41 billion) worth of long-term overseas bonds this week, following net purchases of 1.56 trillion yen the previous week. Meanwhile, Japanese players sold about 275.5 billion yen worth of short-term debt instruments.
Japanese investors also bought 384.7 billion yen worth of foreign stocks, marking their sixth weekly net purchase in seven weeks.
Simultaneously, Japanese debt markets witnessed an overseas capital outflow of 1.4 trillion yen from long-term local bonds on expectations that the BOJ will raise interest rates again this year.
Foreign net sales of short-term instruments totaled 1.41 trillion yen for the third week in a row.
Cross-border investors also sold net 824.4 billion yen in Japanese stocks, the biggest weekly outflow since March 23, to get better returns from U.S. and European stocks that have performed well in recent weeks.
