Thursday, October 24, 2013
Japanese Investors Net-Buy Mid-, Long-Term Overseas Bonds
TOKYO (NQN)--Japanese investors were net buyers of medium- and long-term overseas bonds for the second straight week during Oct. 13-19, to the tune of 1.41 trillion yen, according to data released Thursday by the Finance Ministry. It is the second largest net purchase this year.
On Oct. 16, the U.S. Congress agreed to allow the U.S. government to issue Treasuries until Feb. 7, averting a U.S. default. As a result, banks began buying back U.S. Treasuries.
Japanese investors became net sellers of overseas stocks for the first time in three weeks, selling mutual funds in particular to lock in gains in line with a recovery in the stock market. They became net buyers of short-term overseas bonds for the first time in four weeks.
Overseas investors were net buyers of Japanese stocks for the second straight week, with the net purchase sharply increasing from 144.7 billion yen the previous week to 297.8 billion yen. Investors became less risk-averse after the U.S. averted a default, prompting buying of Japanese stocks.