Japan Rates Topics: JSDA JGB Transactions in June

Research evidence excerpt

Japan Rates Topics: JSDA JGB Transactions in June

tion-linkedJGBs)(Top=Net,Botom=Transaction) and Figure 2JSDABondTransactiondata,longsectors(10Yand10Yinflation-linkedJGBs)(Top=Net,Botom=Transaction) show the data for long sectors (10Y and 10Y inflation-linked

JGBs).

• Public institutions + city banks: Public institutions and city banks (after factoring in

BoJ operations and direct auction participation) are estimated to have been net

buyers of roughly JPY2.12tn. While city banks' flows via securities companies

amounted to net buying of only JPY80bn, it appears that a substantial portion of

their purchases was conducted through direct auction participation rather than

through securities companies.

• Regional financial institutions: Regional financial institutions were net buyers of

approximately JPY280bn in total, suggesting continued steady investment in the

long sector.

• Foreign investors: Foreign investors remained net buyers, but the pace of buying

continued to slow, falling from +JPY1.05tn in April to +JPY710bn in May and

+JPY370bn in June.

Intermediate sector: Strong net buying by deposit-taking institutions

Table 3JSDABondTransactiondata,short/intermediatesectors and Figure 3JSDABondTransactiondata,short/intermediatesectors show the data for intermediate sectors (2Y and 5Y).

BoJ operations and direct auction participation) were net buyers of JPY2.99tn. As in

the long sector, a significant portion of demand appears to have come through direct

auction participation rather than transactions via securities companies.

roughly JPY610bn in total, suggesting continued steady accumulation of short- and

intermediate-sector JGBs.

• Foreign investors: Foreign investors were net sellers of JPY690bn. The scale of net