Updated
Updated · Bloomberg · Jul 2
Foreign Traders Dump ¥3.12 Trillion Japan Bonds, Biggest Outflow Since January 2023
Updated
Updated · Bloomberg · Jul 2

Foreign Traders Dump ¥3.12 Trillion Japan Bonds, Biggest Outflow Since January 2023

2 articles · Updated · Bloomberg · Jul 2

Summary

  • ¥3.12 trillion ($19.2 billion) of Japanese bonds was sold by overseas investors in June, marking the largest monthly outflow in three years.
  • Japan debt drew the heavy selling after underperforming most global bond peers, leaving foreign traders to pull back exposure.
  • Ministry of Finance weekly data through June 26 captured the June exodus, while separate monthly and balance-of-payments figures also showed it was the biggest withdrawal since January 2023.

Insights

With foreign investors fleeing, will the infamous 'widow-maker' trade on Japanese bonds finally pay off?
Is the global financial system prepared for the end of Japan's cheap money era?