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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...
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.
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