Japanese Investors Sell Record Amount of Foreign Debt in Nine Years

Reported 7 months ago

Japanese investors sold a record amount of foreign debt in nine years, totaling ¥2.65 trillion ($16.9 billion) in the week through June 7, marking the largest such sale since April 2015. The sales were influenced by global central bank policy shifts, including interest-rate cuts in the eurozone and Canada, and weak US manufacturing and job opening data. Analysts suggest that banks took advantage of the situation to profit by selling Treasuries and accumulating shorter-tenor US bonds, while also possibly selling high-hedging-cost foreign notes to purchase Japanese government debt.

Source: YAHOO

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