Tuesday, July 9, 2013

Japanese Investors Flee Foreign Debt on Fed Tapering News

Personal note: This is beginning of a new trend. When FED says that they are not buying, more and more nations/investor will come out to sell ahead of FED's selling.
Japanese investors stampeded out of foreign debt in June, selling a record amount, as Treasurys and other global bonds fell on signs the U.S. Federal Reserve may slow its bond buying soon.
Investors based in Japan sold a net 2.958 trillion yen ($29 billion) in foreign bonds and notes in June – a record amount – Ministry of Finance data showed Monday.
The moves were sparked by comments from U.S. Fed Chairman Ben Bernanke that the central bank could pull back on its bond buying if the U.S. economy continues to improve, with prices on sovereign debt in the U.S. and other industrialized countries tumbling heavily. Fund managers said that left Japanese investors with significant unrealized losses – meaning the assets had fallen in price leaving investors with paper losses – especially on U.S. mortgage-backed securities, which they then sold.
Full article:

No comments:

Post a Comment