Demand for bonds is back with BOJ no longer the only buyer in town

Japanese authorities bonds look set for additional beneficial properties with each international and home traders seen returning to a market the place the central financial institution has typically been the one purchaser this yr.

A pullback in bets on a Financial institution of Japan coverage tweak resulted in report month-to-month purchases from abroad funds in July, whereas hovering hedging prices have worn out the normal yield premium Japanese traders loved from markets like Treasurys, resulting in expectations of a change again to JGBs from native patrons equivalent to life insurers.

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