Japan: Lifer foreign bond investment slows sharply - Nomura

Japanese investors largely slowed foreign securities purchases in November, driven mainly by the cautious stance of lifers on foreign bond investment as noted by the Research Team at Nomura.

Key Quotes

“The pace of the rise in UST yields has slowed and volatility has begun to decline, so lifer foreign bond purchases could pick up again. Furthermore, a drop in USD/JPY could trigger dip buying demand and enhance their interest in unhedged foreign bonds. Retail investors have also slowed foreign investment, while their risk sentiment was likely solid after the US election outcome.”