Japanese Foreign Investment in Bonds declines ¥-84.5B as capital outflows dominate

Net Foreign Bond Investment in Japan declined by ¥-84.5 billion into November 24th compared to a ¥4 billion increase for the previous period, which was revised upwards from the previously-reported ¥2.5 billion net surplus in foreign bond investment.

Foreign Investment in Japanese Stocks into November 24th saw a minor capital inflow of ¥4.2 billion, a notable decline from the previous period’s net inflow of ¥285.9 billion.

Market Reaction

The USD/JPY is holding steady just above the 147.00 handle after testing into an early Thursday low of 146.84 prior to the data release.

About Japanese Foreign Investment 

Securities investment, released by the Ministry of Finance, refers to bonds issued in a domestic market by a foreign entity in the domestic market’s currency. The report is released by the Ministry of Finance, detailing the flows from the public sector excluding the Bank of Japan. The net data shows the difference between capital inflow and outflow. A positive difference indicates net sales of foreign securities by residents (capital inflow), and a negative difference indicates net purchases of foreign securities by residents (capital outflow).

Source: https://www.fxstreet.com/news/japanese-foreign-investment-in-bonds-declines-y-845b-as-capital-outflows-dominate-202311292357