Biggest Treasury Buyer Outside U.S. Quietly Selling Billions

  • Japanese investors can find good debt opportunities in Europe
  • Rising currency hedging costs and Fed hikes deter inflows
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In times of Treasury turmoil, the biggest investor outside American soil has historically lent a helping hand. Not this time round.

Japanese institutional managers -- known for their legendary U.S. debt buying sprees in recent decades -- are now fueling the great bond selloff just as the Federal Reserve pares its $9 trillion balance sheet.