Bonds
BOJ’s Bond Buying Cuts Carve Out Opening for Japanese Investors
- Trust banks lead buying as pension funds rebalance holdings
- Local private demand may hold up: Sumitomo Mitsui Trust’s Sera
The Bank of Japan headquarters in Tokyo.
Photographer: Soichiro Koriyama/BloombergThis article is for subscribers only.
As the Bank of Japan slows debt purchases, local investors are doing just the opposite, limiting upward pressure on bond yields.
Private investors in the Asian nation bought a net ¥32.2 trillion ($225 billion) of Japanese government notes in the 12 months though August, Bloomberg analysis of BOJ data showed. Net purchases by the central bank have fallen below zero as redemptions surpassed buying.