Japanese investors were net buyers of foreign bonds for the first time in three weeks, as a stronger yen following U.S.-Japan intervention and elevated overseas yields supported demand.Japanese investors bought a net 477.9 billion yen ($3.03 billion) in foreign long-term bonds in the week ended August 1 as well as a net 424.7 billion yen in short-term bills in their first weekly net purchases since July 11, data from Japan's Ministry of Finance showed.The yen's roughly 3.98% rise against the U.S. dollar last week boosted Japanese investors' purchasing power. The currency gained after Japanese and U.S. authorities intervened in currency markets, following its slide to a 40-year low in the previous week.Japanese investors return to overseas bonds as stronger yen, higher yields boost demandIn a noteworthy development, Japanese investors turned their attention to foreign bonds for the first time in three weeks, driven by a strengthened yen and increasing overseas yields. Simultaneously, foreign investors returned to Japanese long-term bonds after earlier outflows, although they receded from Japanese stocks and short-term bills. This trend follows recent currency market interventions by both Japanese and US authorities.Japanese investors have sold a net 2.84 trillion yen in foreign long-term bonds so far this year, despite last week's buying, compared with 9.57 trillion yen in net purchases over the same period last year.Japanese investors, meanwhile, divested a net 276.4 billion yen from foreign stocks, nearly reversing net purchases of 289.1 billion yen in the prior week.At the same time, foreign investors bought a net 558.9 billion yen of Japanese long-term bonds-their first weekly net purchase since July 11. Japanese short-term bills, however, recorded a fourth consecutive weekly outflow of 292.9 billion yen.Foreign investors withdrew a net 392.5 billion yen from Japanese stocks, following net purchases of 912.4 billion yen in the prior week.
Japanese investors return to overseas bonds as stronger yen, higher yields boost demand
In a noteworthy development, Japanese investors turned their attention to foreign bonds for the first time in three weeks, driven by a strengthened yen and increasing overseas yields. Simultaneously, foreign investors returned to Japanese long-term bonds after earlier outflows, although they receded from Japanese stocks and short-term bills. This trend follows recent currency market interventions by both Japanese and US authorities.









