Japanese Make Record Foreign Bond Sales as Hedging Costs Rise
- Sales also fueled by speculation BOJ will allow higher yields
- ‘Hedge costs are likely to stay high’: NLI Research Institute
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Japanese investors offloaded a record amount of overseas debt last year as hedging costs rose and speculation the nation’s central bank would normalize policy fueled bets on higher local yields.
Money managers in the Asian nation cut holdings of foreign fixed-income securities by ¥23.8 trillion ($181 billion) over the period, according to balance-of-payments data published by the Ministry of Finance on Wednesday. That was an all-time high in the data that starts in 1996.