9 Apr 2015
Japanese flow into EZ sovereign bonds persist - DB
FXStreet (Bali) - Japanese flow into Eurozone sovereign bonds in February remains positive, notes Abhishek Singhania,
Strategist at Deutsche Bank.
Key Quotes
"The Japanese Ministry of Finance data on flows from Japanese investors into international sovereign bond markets for the month of February does not show any evidence of any significant change in the trend in Japanese flows into the Eurozone sovereign bond market."
"The total flow in the 4 major (Germany, France, Italy and Netherlands) Eurozone sovereign bond markets was +EUR 1.7bn which compares to a 3M and 12M average of +EUR 0.9bn and +EUR 0.5bn. In comparison the flow into US Treasuries was much larger at EUR 7.4bn which was ~3x the 3M and 12M average. There was some small selling of Gilts which could be indicative of limited appetite ahead of the UK elections."
"Although there is no evidence of selling of Eurozone sovereign paper there could nevertheless be some shift away from Eurozone paper into USTs."
Strategist at Deutsche Bank.
Key Quotes
"The Japanese Ministry of Finance data on flows from Japanese investors into international sovereign bond markets for the month of February does not show any evidence of any significant change in the trend in Japanese flows into the Eurozone sovereign bond market."
"The total flow in the 4 major (Germany, France, Italy and Netherlands) Eurozone sovereign bond markets was +EUR 1.7bn which compares to a 3M and 12M average of +EUR 0.9bn and +EUR 0.5bn. In comparison the flow into US Treasuries was much larger at EUR 7.4bn which was ~3x the 3M and 12M average. There was some small selling of Gilts which could be indicative of limited appetite ahead of the UK elections."
"Although there is no evidence of selling of Eurozone sovereign paper there could nevertheless be some shift away from Eurozone paper into USTs."