Japanese investors buying foreign bonds – RBC CM

Japanese investors were net buyers (JPY0.3trn) of foreign bonds in the week to last Friday, notes the analysis team at RBC Capital Markets.

Key Quotes

“After a sharp pickup in demand for foreign assets in mid-summer, the trend has been quite neutral recently, leaving overall demand for JPY more likely to be driven by speculative positioning (still materially long USD/JPY on our measures) and hedging flow.”

“Japan’s September trade surplus came in at JPY0.2trn (consensus JPY0.3trn). Exports were up 14% y/y, though most of this growth continues to reflect prices rather than volumes. In volume terms, exports were up 4% y/y – in line with the recent trend.”