Japanese investors turn net sellers of foreign debt in September

Article content

Japanese investors were heavy sellers of foreign bonds in September, as a collapse in British gilts shook confidence in bond markets globally.

According to data from Japan’s Ministry of Finance, Japanese investors sold a net 2.6 trillion yen ($17.83 billion) worth of overseas bonds in September, after buying 1 trillion yen in the previous month.

Article content

Life insurers sold 1.1 trillion yen worth of foreign bonds, while banks and trust banks withdrew 0.8 trillion and 0.4 trillion respectively.

At the same time, pension funds bought 0.2 trillion worth of foreign bonds, which was likely for rebalancing purposes, Barclays said in a report.

Meanwhile, Japanese investors bought 951 billion yen worth of overseas equities in September, after selling 1.6 trillion in August. ($1 = 145.7900 yen)

(Reporting By Patturaja Murugaboopathy in Bengaluru; Editing by Neha Arora)