Japan’s $4 Trillion ‘Carry Trade’ Begins to Slowly Unwind
- Gap between rates in Japan and other countries is narrowing
- Japan investors are favoring domestic bonds over foreign debt
In the first eight months of the year, Japanese investors snapped up a net ¥28 trillion ($192 billion) of the nation’s government bonds.
Photographer: Shiho Fukada/BloombergThis article is for subscribers only.
Japan’s investors are starting to lose their decades-long infatuation with overseas assets.
In the first eight months of the year, Japanese investors snapped up a net ¥28 trillion ($192 billion) of the nation’s government bonds, the largest amount for the time frame in at least 14 years. They also cut purchases of foreign bonds by almost half to just ¥7.7 trillion and their buying of overseas equities was less than ¥1 trillion.