Japanese investors' purchases of domestic government bonds climbed to the highest in 17 years in the fiscal first half, reflecting an attempt by pension funds to rebalance their portfolios. Net purchases totaled ¥18.8 trillion yen ($119 billion) in the six months ended Sept. 30, according to data released by the Japan Securities Dealers Association. Trust banks, often regarded as proxies for pension funds, accounted for almost half of the buying, while a third came from banks.
A sale of 20-year government bonds saw the strongest demand on record, adding to signs of robust appetite for domestic debt. Separately, trust banks' trust accounts bought ¥10.1 trillion of foreign bonds, while banks offloaded ¥7.4 trillion of such securities, the most since at least 2014, as higher oil prices were expected to push up yields.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing