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| Foreign holdings of Japanese securities | ||
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| TraderSon |
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  Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | The foreign appetite for Japanese securities (bonds and stocks) persists and more than overset the meager Japanese purchases of foreign bonds. In the two weeks through January 23, Japan experienced net inflow of almost JPY3 trillion (~$27 bln) portfolio capital. TraderSon | |||
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| Dollar Yen |
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  Registered Member #188 Joined: Sun May 04 2003, 12:12PMLocation: Osaka, Japan Posts: 836 | "TraderSon" wrote ... The foreign appetite for Japanese securities (bonds and stocks) persists and more than overset the meager Japanese purchases of foreign bonds. In the two weeks through January 23, Japan experienced net inflow of almost JPY3 trillion (~$27 bln) portfolio capital. Blood they are getting! Despite continuing speculation that Japanese officials are leaning against the wind, the dollar has slipped to a new multi-year low against the yen at about JPY105.20. Some real money demand for yen may have been related to the strong reception to the MOF’s 10-year bond auction today that was covered 2.63 times. In recent weeks, foreign investors have been net buyers of Japanese government bonds, in what appears to be largely a play to capture currency appreciation. Some are linking yen gains today also to confirmation of a JPY70 bln injection by a automotive multinational. Separately, note that there is speculation in a local newspaper that Japanese growth in Q4 could be 5% in annualized terms, outstripping the US rate. Dollar Yen.....Dollar Yen.... | |||
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| Floyd |
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  Registered Member #229 Joined: Sun May 25 2003, 12:49PMLocation: Baton Rouge Posts: 359 | "Dollar Yen" wrote ... 8b8a955a9d="TraderSon" wrote ... The foreign appetite for Japanese securities (bonds and stocks) persists and more than overset the meager Japanese purchases of foreign bonds. In the two weeks through January 23, Japan experienced net inflow of almost JPY3 trillion (~$27 bln) portfolio capital. Blood they are getting! Despite continuing speculation that Japanese officials are leaning against the wind, the dollar has slipped to a new multi-year low against the yen at about JPY105.20. Some real money demand for yen may have been related to the strong reception to the MOF’s 10-year bond auction today that was covered 2.63 times. In recent weeks, foreign investors have been net buyers of Japanese government bonds, in what appears to be largely a play to capture currency appreciation. Some are linking yen gains today also to confirmation of a JPY70 bln injection by a automotive multinational. Separately, note that there is speculation in a local newspaper that Japanese growth in Q4 could be 5% in annualized terms, outstripping the US rate. Incredible numbers the BOJ intervention - if the dollar does collapse then there will some happy investors and they can thank the BOJ for holding it up for them! Floyd Chez Floyd | |||
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| Johnny Forex |
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 Registered Member #300 Joined: Mon Aug 04 2003, 01:51PMLocation: Los Angeles Posts: 1920 | Japan’s 5-year bond auction was well-received, with a bid-cover ratio of 2.64 compared with the 2.41 ace bid-cover since the 5-year bond auctions began in four years ago. This helped the JGB market extend it advancing steak to 8 consecutive sessions, reportedly the longest since Oct 2000. Johnny Forex not Handsome or Bravo... | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | USD/JPY is seeing little retreat from the highs with funds and CTA"s continuing to buy the currency. Support on any dips is seen at 106.20/30, the levels where stops were triggered on the move higher. Stops remain above 106.50 with traders reporting large sized buying orders of up to a yard seen in the move this session. TraderSon | |||
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| Dollar Yen |
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| Registered Member #188 Joined: Sun May 04 2003, 12:12PMLocation: Osaka, Japan Posts: 836 | JGB prices were mixed having recovered from early losses after the JPY dropped from recent peaks against the Dollar. March JGB futures was off 0.05 points at 139.85. 10Y yield was off by 1.0 bps to 1.215%. N225 was up by 0.77% at 10,759 points supported by expectations of a strong market debut for Shinsei Bank. Dollar Yen.....Dollar Yen.... | |||
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| Dollar Yen |
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| Registered Member #188 Joined: Sun May 04 2003, 12:12PMLocation: Osaka, Japan Posts: 836 | JGB prices were steady to slightly firmer supported by prospects of continued deflation. The March futures was up by 0.09 points at 140.04 while the 1y yield stood at 1.210%. N225 was off by 0.615 at 10,688 points. Dollar Yen.....Dollar Yen.... | |||
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| FX Trader |
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 Registered Member #360 Joined: Mon Sep 22 2003, 03:42PMLocation: Toronto Posts: 2093 | There continues to be anecdotal reports of funds moving money into Japanese stocks with the Nikkei up 194 pts last night to 11,436 and closing at the highest in 31 months. In addition, the Mainichi reported overnight that automobile and electronics firms are expanding their hiring plans for FY2005 as the economy continues to improve. The Nihon Keizai Shimbun also reports today that collective pretax profitability of listed companies in Japan will surpass the "bubble era" high from fiscal 1988, rising to 4.3%. USD/JPY trades at 108.13 but continues to meet offers near 108.30 on any bounce with sellers staggered up to 108.50. FX Trader $$$$$$$$ | |||
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| Dollar Yen |
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| Registered Member #188 Joined: Sun May 04 2003, 12:12PMLocation: Osaka, Japan Posts: 836 | "FX Trader" wrote ... There continues to be anecdotal reports of funds moving money into Japanese stocks with the Nikkei up 194 pts last night to 11,436 and closing at the highest in 31 months. In addition, the Mainichi reported overnight that automobile and electronics firms are expanding their hiring plans for FY2005 as the economy continues to improve. The Nihon Keizai Shimbun also reports today that collective pretax profitability of listed companies in Japan will surpass the "bubble era" high from fiscal 1988, rising to 4.3%. USD/JPY trades at 108.13 but continues to meet offers near 108.30 on any bounce with sellers staggered up to 108.50. The MOF’s weekly portfolio flow data shows continued (and stepped up) Japanese repatriation last week (JPY1.3 tln up from JPY609 bln the previous week) and continued strong foreign demand for Japanese equities (JPY1.2 tln). The surging yen’s impact on the capital markets has not been as great as many would have suspected. The Nikkei is up 1.6% over the past 5 sessions, the best performing major bourse. The benchmark 10-year JGB yield is off 1 bp in the same time, roughly matching the performance of the US 10-year. The MOF’s 20-year bond auction today was well received with a bid-cover of 2.65, better than the result of last month’s 20-year auction. The performance of the US Treasury market is also noteworthy. The signals that Japanese intervention tactics may change and the surge of the yen has not derailed. Indeed the 10 and 30-year Us Treasury futures contracts made highs yesterday since last summer. Dollar Yen.....Dollar Yen.... | |||
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| Dollar Yen |
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| Registered Member #188 Joined: Sun May 04 2003, 12:12PMLocation: Osaka, Japan Posts: 836 | Yesterday the MOF reported that Japanese investors bought JPY1.6 tln ($15 bln) of foreign bonds last week. Bond investments tend to be hedged and given the shape of the yield curves, US dollar investments are more likely to be hedged than sterling or the Aussie dollar. Japan’s Tankan report showed that business sentiment improved by more than expected. Confidence amongst the large manufacturers rose to 12 from 7 in December, the highest since 1997. The large nonmanufacturers’ index also rose to 5 from zero in the prior quarter. Most cyclical indicators improved moderately, and bank lending conditions for small firms improved further. Fin Min Tanigaki hinted today that deflation was beginning to abate. This is not really new news from Tanigaki but will provide the market with another incentive to test official resolve to keep USD/JPY from falling quickly to 101.30. Dollar Yen.....Dollar Yen.... | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | Japanese investors bought almost JPY1.5 trillion of foreign bonds last week. In dollar terms they have bought almost $30 bln worth of foreign bonds in the last four weeks. Japanese investors are suspected to have been good participants at recent US auctions and there are expectations that they have been active in this week’s auctions in Europe (Italy, Germany and France). Demand for French paper today was thought to have been partly behind the firmer tone for the euro against the yen in the Asian session. Japanese investors also bought foreign equities (JPY208 bln). For their part, foreign investors’ liquidation of Japanese bonds financed the continued purchases of Japanese equities. Note that a Reuters survey found only 4 of the 8 Japanese lifers interviewed planned on increasing foreign asset purchases this year. Last year, the life insurers made nearly a quarter of their foreign asset purchases in the first month of the new fiscal year. In its interesting to note that in both 2002 and 2003, the dollar recorded its high for the year in late Q1. TraderSon | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | Weekly Japanese portfolio data was a bit surprising. Foreigners were not large sellers of Japanese equities as many might have suspected, and their activity did not dominate the portfolio flows. Foreign investors parted with JPY259 bln of Japanese equities, but were buyers of JPY87 bln of Japanese government bonds. For their part, Japanese investors bought JPY834 bln of foreign bonds,much more than the market anticipated (which might have been inflated by the US quarterly refunding), and another JPY102 bln of foreign equities. This report covered the week through May 14. Subsequently, anecdotal reports suggest foreign investors may have returned to the buy side of Japanese equities. Separately, the BOJ kept its assessment of the economy unchanged from April. The government’s assessment should be released tomorrow, but the local press appears to have leaked it. It is also expected to keep its assessment unchanged while expressing concern about the risks posed by the steep rise in oil prices. TraderSon | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | Japanese weekly portfolio flows (week ending May 21) were a bit surprising. Despite the talk in Japan that an inflation target may formally be adopted later this year, foreign investors bought what appears to be a record amount of Japanese government bonds last week (JPY1.17 trillion). This was partly offset by foreign sales of Japanese equities (JPY4 bln) for the fourth consecutive week. For their part, Japanese investors bought JPY19 bln of foreign equities and JPY373.3 bln of foreign bonds. Consequently Japan, a large current account surplus country, recorded a net inflow of JPY777.5 bln of portfolio flows. On a slightly different front, note that Poland tapped the samurai market this week, and at least two Japanese entities sold euro-denominated bonds this week. TraderSon | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | Earlier today, the MOF’s JPY1.9 trillion sale of 10-year bonds was covered 59.4 times compared with average coverage of almost 3.60. Last week’s 20-year bond sale was also well received as the highest bid-cover since 1997. Foreign investors have become better buyers of JGBs in recent weeks, and Japanese institutional investors appear to be lengthening duration as recent inflation data suggest deflationary forces have not been fully defeated (CPI excluding fresh food was -0.2% year-over-year). Note that the yield gap between Japan’s 7 and 10-year bonds widened to 46.5 basis points in late May, the widest in nearly seven months, which also appears to attracting funds. TraderSon | |||
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| Figure Bid |
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 Registered Member #415 Joined: Tue Jun 01 2004, 02:12PMLocation: London, UK Posts: 856 | The MOF’s weekly portfolio flow data found that for the first time in four weeks, foreigners returned to the buy side of Japanese equities. In the week ending May 27, foreign investors bought JPY233.7 bln (~$2.1 bln) worth of Japanese stocks. This was largely at the expense of JGB holdings, which were pared back by JPY287.28 bln. Meanwhile, Japanese investors continued to buy foreign securities (JPY442.1 bln worth of foreign bonds and JPY97.8 bln of foreign shares). Looking at the players’ cards, some observers suspect that some of the roughly JPY3 trillion of foreign bonds bought since the beginning of the new fiscal year reflect the re-deployment of pension monies returned to the government last fall. Figure Bid ....lookin' for the offer John........... | |||
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| Figure Bid |
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| Registered Member #415 Joined: Tue Jun 01 2004, 02:12PMLocation: London, UK Posts: 856 | "TraderSon" wrote ... Earlier today, the MOF’s JPY1.9 trillion sale of 10-year bonds was covered 59.4 times compared with average coverage of almost 3.60. Last week’s 20-year bond sale was also well received as the highest bid-cover since 1997. Foreign investors have become better buyers of JGBs in recent weeks, and Japanese institutional investors appear to be lengthening duration as recent inflation data suggest deflationary forces have not been fully defeated (CPI excluding fresh food was -0.2% year-over-year). Note that the yield gap between Japan’s 7 and 10-year bonds widened to 46.5 basis points in late May, the widest in nearly seven months, which also appears to attracting funds. Note that Japan reported a 10.2% year-over-year rise in Q1 capital expenditures, which is the largest rise in seven years, reinforcing market perceptions of the Japanese recovery. Although JGBs recovered in the face of the drop in share prices, the initial yield on the 10-year benchmark rose to the 1.6% level, the highest level in 9-months. Figure Bid ....lookin' for the offer John........... | |||
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| Johnny Forex |
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| Registered Member #300 Joined: Mon Aug 04 2003, 01:51PMLocation: Los Angeles Posts: 1920 | Japanese bonds had their largest gain in half a month as weak economic data raised concern the economy was slowing. The July jobless rate rose to 4.9% from 4.6%, the first increase since January while households cut spending 2.5% m/m in July. The market had expected an increase. CPI also had a larger than expected decline with the core rate falling 0.2%. Meanwhile a Reuters Asset Allocation survey suggested Japanese asset managers might reweigh their portfolios in favor of Japan cutting US bonds by 1.2% to 30.4% while raising the weighting of domestic stocks 2.7% to 24.3% and domestic bonds by 0.7% to 38.5%. Recent Japanese portfolio flow data has suggested that Japanese investors have been net buyers of foreign stocks and bonds while foreign investors have continued to purchase Japanese bonds and stocks, though stock purchases have been in much smaller amounts than earlier in the year. Foreign central bank holdings of US government assets rose $5.5 bln in the week ended August 25th with Treasuries rising $983 mln and agencies, a volatile and frequently revised series, rising $4.6 bln. Johnny Forex not Handsome or Bravo... | |||
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| Pi |
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  Registered Member #218 Joined: Sun May 18 2003, 08:36PMPosts: 488 | Foreign investors continued to bring more money into Japan in the week- ended January 22. MoF flow data show net purchases of Y155.5 bln in Japanese stocks, Y102.6 bln in Japanese bonds and Y291.8 bln in Japanese shorter-dated bills. The data backs up anecdotal evidence of flows into Japanese stocks, especially on dips. The bond and bill buying also suggests foreign interest played a major part in the decline in Japanese yields to levels not seen since last March. On the other side of the ledger, Japanese investors sold a net Y254.8 bln in foreign bonds but bought a net Y53.8 bln in bills. The data is surprising with talk of Japanese buying into both the U.S. and E.Z. last week. Issues that saw large overseas interest included those from Germany, France, Spain and the U.S. In particular, the Freddie Mac, FHLB and German agency KfW issues were reported to have seen large Asian interest. It could be that most of the this interest was from non-Japanese Asian investors. Flows are likely to have reversed in the current week with anecdotal evidence again of Japanese interest in German, Australian and New Zealand paper. Though much smaller amount-wise, Japanese investors continued to buy foreign stocks, purchasing a net Y73.8 bln last week. Pi | |||
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| Pi |
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| Registered Member #218 Joined: Sun May 18 2003, 08:36PMPosts: 488 | Flow data from MoF for the week-ended January 29 show foreign investment in Japan picking up. Overseas investors bought a net Y271.0 bln in Japanese stocks, Y639.1 bln in Japanese bonds and Y265.8 bln in bills. On the other side of the ledger, Japanese investors sold a net Y353.7 bln in foreign bonds and a net Y114.2 bln in bills. They did however continue to add to stock portfolios, buying a net Y39.4 bln. Pi | |||
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| Pi |
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| Registered Member #218 Joined: Sun May 18 2003, 08:36PMPosts: 488 | Data on flows into Japan show foreign investors still infatuated with Japanese stocks. They pared their holdings of Japanese bonds and bills however. Data from MoF for the week-ended March 5 show foreign investors buying a net Y345.9 bln in Japanese stocks. They sold a net Y272.1 bln in Japanese bonds and a net Y463.2 bln in Japanese bills. Japanese investors, for their part, bought a net Y19.1 bln in foreign stocks but sold a net Y581.9 bln in bonds and a net Y73.5 bln in bills. The data confirms anecdotal evidence of foreign flows into the Japanese stock market. The Nikkei is down a bit today but the prognosis is for a near- term move back above 12K. Japanese interest or lack thereof in foreign bonds is also well-documented. This is especially the case with U.S. interest rising, large last night, and most players either hedging out or paring positions ahead of more capital losses. U.S. bonds sold off hard overnight, and many are concerned that Asian central banks with large holdings of U.S. paper may think twice before investing more. To wit, some may already be selling. Talk has it that China was a very good seller of USD overnight. Japan, which also holds a big chunk of U.S. paper, is unlikely to move on its USD-denominated holdings. Pi | |||
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| euroman |
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 Registered Member #59 Joined: Mon Apr 07 2003, 05:30PMLocation: Munchen, Germany Posts: 2401 | USD-JPY briefly took out 111.95 support on talk of Japanese investors repatriating hefty coupon payments on Treasuries. The political uncertainty surrounding the expected vote on the privatisation of the postal system on Friday doesn’t seem to be hurting the JPY so far. PM Koizumi has threatened to dissolve the lower house and call a snap election if the bills do not make it through the upper chamber – and this is a distinct possibility bearing in mind that the lower house passed the bills by just five votes! Euroman | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | Foreign investors have returned to buying Japanese stocks, purchasing a net Y278.4 bln in the week-ended February 25. The previous week, these players bought a net Y331.9 bln. In the week-ended February 11, they sold a net Y252.9 bln. Despite the ups and downs in the Nikkei this week, they are likely to remain net buyers when data for the current week is released next Thursday. As to other investment categories, foreigners also bought a net Y278.4 bln in Japanese bonds, in contrast to net sales of Y320.1 bln the previous week and net sales of Y563.5 bln in the week-ended February 11. Foreign players did sell a net Y213.5 bln in Japanese bills in the latest week however. On the other side of the ledger, Japanese investors bought a net Y12.4 bln in foreign stocks, sold a net Y178.0 bln in foreign bonds and bought a net Y29.7 bln in foreign bills. The net sales of bonds suggests some light repatriation, ahead of the Japanese fiscal year-end in March. A similar situation was probably seen in the previous week with net sales of Y153.2 bln recorded. The February 11 week saw net purchases of Y128.0 bln. Source: Haruya Ida at IFR TraderSon | |||
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| Lolis |
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 Registered Member #726 Joined: Sun Jan 15 2006, 02:11PMPosts: 12 | Flow data from MoF for the week-ending March 4 show Japanese investors back to buying foreign bonds. They bought a net Y176.9 bln compared to sales of Y178.0 bln the previous week and sales of Y153.2 bln in the week-ended February 18. Japanese investors also bought a net Y44.6 bln in foreign stocks and Y42.6 bln in foreign bills. On the other side of the ledger, foreign investors remained buyers of Japanese stocks, purchasing a net Y255.2 bln in the latest week, down a bit from Y365.9 bln in the week-ended February 25. Foreign investors also bought a net Y42.5 in Japanese bonds and a net Y329.4 bln in bills. | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | Repatriation flows back to Japan continued in the week-ended march 25 according to data from MoF earlier today. Japanese investors sold a net Y664.6 bln in foreign bonds and a net Y58.8 bln in foreign bills. They did however purchase a net Y2.9 bln in foreign stocks, a relatively negligible figure indicating even sales and purchases. The flows can be directly linked to the USD/JPY slide to 115.50 on March 20. Although there has been anecdotal evidence of more repatriation flows in the subsequent week, the price action suggests the amounts may have been quite a bit less what with the USD/JPY low limited to 116.26 on the 28th. On the other side of the ledger, foreign investors bought a net Y299.0 bln in Japanese stocks in the latest reporting week but sold a net Y477.9 bln in bonds and a net Y147.7 bln in bills. TraderSon | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | Japanese investors continued purchases of overseas bonds in the week- ended May 27 according to data just released by MoF. The bought a net Y437.3 bln in foreign bonds. On the other side of the ledger, it seems foreigners were buying into the Nikkei moves down during this time, buying a net Y221.7 bln in Japanese equities. TraderSon | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | MoF Flow Data - Jun 8. Foreign investors look to have sought bargains in the week-ended June according to data from MoF. They bought a net Y331.5 bln during the week against sales of Y221.7 bln in the preceding week. On the other side of the ledger, Japanese investors bought a net Y32.2 bln in foreign bonds, a very large decline from the Y437.3 bln purchases on a net basis in the preceding week. TraderSon | |||
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| TraderSon |
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| Registered Member #299 Joined: Fri Aug 01 2003, 02:08PMLocation: Tokyo, Japan Posts: 2470 | Foreign investors: -- Bought net Y8.9 bln in Japanese equities -- Sold net Y52.5 bln in Japanese bonds -- Bought net Y674.2 bln in Japanese money market instruments -- Resulting in a net purchase of Y630.7 bln. Source: MNI Sep 6, 2007 TraderSon | |||
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