BUZZ-Japanese divest of foreign assets latest reporting week

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  • MOF flow data for week-ended Oct 26 show Japanese divesting foreign assets

  • Not surprising given risk events including BOJ today, US data, US elections

  • Japanese sold net Y397.6 bln foreign stocks, Y889.6 bln bonds

  • Follows sales of stocks, bonds in week-ended Oct 19 and Oct 12

  • Stocks sales effectively profit-takes after recent record highs on Wall St

  • Bond sales ahead of buys later at higher yields? US yields recently on up-up

  • On other side of ledger, foreign investors interest in Japan assets mixed

  • Little change in Japan stock holdings, only up Y8.0 bln, large buys prev wk

  • Net Y277.9 bln JGBs bought but Y682.6 bln bills sold, suggests flatteners

  • Follows massive Y2.4607 tln bills buys and Y487.1 bln JGB sales prev week

  • BOJ seen on hold on rates today, debate however on possible December hike

  • See nAZN2JJ40F, on BOJ policy nL1N3M600T, for more click on FXBUZ


(Haruya Ida is a Reuters market analyst. The views expressed are his own)

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