JGB outflows hit a 7-week high on inflation, fiscal worries
Elsewhere, Japanese investors bought a net 758.7 billion yen of foreign long-term bonds as they remained net buyers for a third straight week. They also added a net 41.4 billion yen of foreign equities after divesting a combined 3 trillion yen of shares in the preceding two weeks.
Japanese government bonds (JGBs) recorded the largest weekly foreign outflow in seven weeks in the week to May 16, driven by inflationary pressures and fiscal strains due to an energy shock. Foreigners sold a net 1.03 trillion yen ($6.48 billion) of Japanese long-term bonds in their largest weekly sale since March 28. They also withdrew 804.6 billion yen from short-term bonds, data from the Ministry of Finance showed on Thursday.
The 10-year JGB yield touched its highest levels since 1996 this week as Japan islikely to issue fresh debt to fund an extra budget to cushion the economic blow from the Middle East war and higher oil prices. Last week's inflation report bolstered bets of rate hikes by the Bank of Japan, weighing on investor sentiments.
Foreigners, meanwhile, extended their recent buying streak in equities into a seventh straight week with a net 949.6 billion yen of weekly purchases. Elsewhere, Japanese investors bought a net 758.7 billion yen of foreign long-term bonds as they remained net buyers for a third straight week.
They also added a net 41.4 billion yen of foreign equities after divesting a combined 3 trillion yen of shares in the preceding two weeks. ($1 = 158.9600 yen)
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)
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