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18 Apr 2013
Forex Flash: Japanese selling of foreign bonds continued - Nomura
FXstreet.com (Barcelona) - Nomura strategist Yujiro Goto notes that Japanese investors continued selling foreign bonds last week, for the fifth week in a row.
He adds that they sold JPY332 bln ($3.5bln) of foreign bonds, despite expectations for them to invest more in foreign bonds after the BoJ´s bold easing . Further, he notes that while the pace of selling slowed from the previous week, domestic investors stayed on the sidelines amid high volatility in the JGB market. He writes, “Profit-taking by retail investors and contrarian selling by pension funds also contributed to the net selling of foreign bonds, in our view. Japanese investors also sold foreign equities to the tune of JPY158bn ($11.7bln).
He adds that they sold JPY332 bln ($3.5bln) of foreign bonds, despite expectations for them to invest more in foreign bonds after the BoJ´s bold easing . Further, he notes that while the pace of selling slowed from the previous week, domestic investors stayed on the sidelines amid high volatility in the JGB market. He writes, “Profit-taking by retail investors and contrarian selling by pension funds also contributed to the net selling of foreign bonds, in our view. Japanese investors also sold foreign equities to the tune of JPY158bn ($11.7bln).