Japan Bonds Set for Biggest Foreign Outflow in Two Years on BOJ
- Selling reflects expectations of rising bond yields: BofAML
- Early signs show outflows might prove to be temporary
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Global funds are cutting their holdings of Japanese debt at the fastest pace in more than two years, as investors juggle the possibility of higher yields in the world’s second-largest bond market.
Non-resident investors sold a net 1.47 trillion yen ($13.2 billion) of Japanese bonds between July 27 and Aug. 24, according to weekly portfolio flow data from the finance ministry. That points to the biggest monthly outflow since March 2016.