Japanese monthly overseas bond purchases biggest in more than 6-1/2 years

Kitco Media
By Reuters
Published:
Updated:
Reuters
April 10 (Reuters) - Japanese investors splashed the most money in more than 6-1/2 years on foreign bonds last month as overseas bond prices gained in March due to the turmoil in the global banking sector. According to data from Japan's Ministry of Finance, investors drew a net 5.207 trillion yen ($39.42 billion) worth of overseas bonds in March, their biggest monthly net purchase since July 2016. They purchased a net 5.065 trillion yen worth of long-term and 1.413 trillion yen worth of short-term bonds last month. By investor type, banks purchased a net 3.82 trillion yen worth of non-native bonds, after 3.79 trillion worth of net buying in the previous month. Trust accounts contributed to 454.5 billion yen worth of net purchases. Safe-haven demand boosted U.S. and European government bonds last month due to the crisis in the banking system.


Yields on benchmark 10-year U.S. notes , which move inversely to prices, dropped 42.4 basis points last month, the most of any month since March 2020. Japanese investors also secured a net 195.2 billion yen worth of foreign equities last month, after 2.15 trillion yen worth of net selling a month ago. They purchased a net 4.806 trillion yen worth of U.S. bonds in January, but exited 306.38 billion yen worth of European debt, Bank of Japan data showed. ($1 = 132.0900 yen) <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Japanese investments in overseas assets (monthly) Japanese investments in U.S. and European assets (monthly) ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Jan Harvey)

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