Japanese Investors Slow Infusions In Overseas Bonds, Equities In October


Japanese investments in foreign bonds and equities have slowed in the month of October. The slowdown is primarily influenced by higher U.S. bond yields and a depreciating Yen, data from Japan’s Ministry of Finance showed.

According to Reuters, Japanese investors bought Yen (¥) 1.12 trillion (USD 7.40 billion) worth of overseas bonds last month, marking the third consecutive month of net buying. However, this amount was significantly lower than the Yen 3.33 trillion invested in September. Additionally, they invested Yen 736.6 billion in foreign equities, which is less than the about Yen 1.17 trillion invested the previous month.

The U.S. 10-year Treasury yield touched a 16-year peak of 5.021 per cent in October, though it has retreated by about 25 basis points since the start of November.

Japanese banks invested Yen 609.2 billion in long-term overseas bonds last month, while trust accounts and insurers withdrew Yen 210.8 billion and Yen 270.6 billion, respectively. Year-to-date data showed that Japanese investors bought about Yen 18.81 trillion worth of U.S. bonds by September, but sold Yen 1.25 trillion worth of European debt.

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