Japanese again big buyers of foreign bonds, locking in ylds?

• Japanese again big buyers of foreign bonds week-ended March 1
• Net Y1.5142 tln bought against sales of Y197 bln the previous week
• Some investors may be locking in still high yield differentials
• Japan-abroad rate diffs narrowing as of late, such flow would not surprise
• Some players also buying foreign bonds for medium-term capital gains
• That said, Japanese foreign bond portfolio investments likely shrinking
• Japanese also bought net Y626.9 bln foreign stocks latest week
• Japan nearing end of fiscal year, some stock-bond buys for next FY
• On other side of ledger, foreign investors sold Japanese stocks, bills
• Net Y708.3 bln stocks and Y730.2 bln bills sold but Y776.5 bln JGBs bought
• Selling of stocks and bills not surprising but JGBs? On higher long levels?
• BOJ hawkish, risk for more rate hikes this year, longs face capital loss

Japanese investments in overseas debt securities:

Japanese investments in stocks abroad:

Foreign flows into Japanese stocks:

Foreign flows into Japanese debt securities: