Japanese Investors Buy Foreign Bonds
Japanese investors purchased foreign long-term bonds for the first time in seven weeks as a tech stock selloff drove demand for safety. Meanwhile, foreign investors poured heavy capital into Japanese bonds and equities.
Insights:
Japan's investors bought a net 1.31 trillion yen ($8.31 billion) of foreign long-term bonds in late October, snapping a six-week selling streak. The shift toward foreign fixed-income assets followed a 2% drop in the Nasdaq Composite Index and the Federal Reserve's decision to hold interest rates steady. Investors pivoted toward safety after disappointing earnings from major technology firms sparked a broader sector selloff.
