Back
15 Aug 2013
Flash: Impact on Japanese bonds purchases in FX space - Nomura
FXstreet.com (Barcelona) - Yujiro Goto, Strategist at Nomura, said even though the FX impact of Japanese buying of foreign bonds may not be huge at the moment, continuous foreign bond investment should suggest that the BOJ easing has been gradually influencing Japanese investment behaviour.
Key Quotes:
“July foreign investment data suggested that the banking sector, whose investment does not usually involve FX transactions, was the major buyer of foreign bonds”.
“We judge a large part of foreign bond buying last week was also by the banking sector and thus, the impact on the FX market was likely to be smaller than the face amount suggested by the data. Nonetheless, strong net purchases of foreign bonds last week is an encouraging sign that the BOJ easing, with the expectation of normalization of the Fed's QE, has started to affect investor behaviour”.
Key Quotes:
“July foreign investment data suggested that the banking sector, whose investment does not usually involve FX transactions, was the major buyer of foreign bonds”.
“We judge a large part of foreign bond buying last week was also by the banking sector and thus, the impact on the FX market was likely to be smaller than the face amount suggested by the data. Nonetheless, strong net purchases of foreign bonds last week is an encouraging sign that the BOJ easing, with the expectation of normalization of the Fed's QE, has started to affect investor behaviour”.