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Japan Is Dumping A Record Amount Of Foreign Bonds: Here Are The Implications

  • Japan Is Dumping A Record Amount Of Foreign Bonds: Here Are The Implications
    by Tyler Durden, http://www.zerohedge.com
    Back in February, around the time Bloomberg caught up to what we had been discussing for the past year, namely the historic dumping of US Treasurys by offshore official investors (such as central banks and reserve managers, just as the selling had in fact reversed and foreigners had resumed buying once more) we noticed that it was not China but Japan that had emerged as one of the most aggressive sellers of Treasuries following material Mark-to-Market losses on existing TSY holdings, prompting the foremost ex-Fed shadow banking expert Zoltan Poszar to declare the selling “a deer in the headlights moment”.

    Fast forward two months, when according to the latest update from Deutsche Bank, Japan’s revulsion to fixed income products has accelerateed, and the Pacific island was a net seller of foreign bonds again in the past week, divesting another $12bn worth of securities. It was not only the third straight week of selling out of Japan, according to MOF data, but more remarkably, the the year-to-date divestment of $66bn in foreign bonds YTD is the biggest since 2002, the first full year of such data is available.

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May 1, 2017 - Posted by | Economics | , , , , ,

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