Biggest Treasury Buyer Outside U.S. Quietly Selling Billions

[Emily]

https://www.bloomberg.com/news/arti...y-buyer-outside-u-s-quietly-offloads-billions
Biggest Treasury Buyer Outside U.S. Quietly Selling Billions

• Japanese investors can find good debt opportunities in Europe
• Rising currency hedging costs and Fed hikes deter inflows

By Michael Mackenzie and
Chikako Mogi
May 1, 2022, 10:00 PM UTCUpdated onMay 2, 2022, 6:21 PM UTC

In times of Treasury turmoil, the biggest investor outside American soil has historically lent a helping hand. Not this time round.
Japanese institutional managers -- known for their legendary U.S. debt buying sprees in recent decades -- are now fueling the great bond selloff just as the Federal Reserve pares its $9 trillion balance sheet...

https://finance.yahoo.com/news/japanese-investors-fuel-us-bond-112212724.html
Japanese Investors Fuel US Bond Selloff, Find Good Debt Opportunities In Europe: Bloomberg
Vandana Singh
Mon, May 2, 2022, 6:22 AM

• Japanese institutional managers are fueling the bond selloff just as the Federal Reserve pares its $9 trillion balance sheet, writes Bloomberg.
• The latest data from BMO Capital Markets show that the largest overseas holder of Treasuries has offloaded almost $60 billion over the past three months.

.....

• Bloomberg says that though it may be a small change relative to Japan's $1.3 trillion stockpile, the divestment threatens to grow.
• "Hedge costs are the issue for investing in U.S. Treasuries," said Eiichiro Miura, the fixed-income department general manager at Nissay Asset Management Corp.

 

[sharon sanders]

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