2025-06-09-花旗集团-日本利率_5月外国债券购买情况_11页_262kb

Japan Rates: Foreign Bond Purchasing Summary

Core Content

This document provides an analysis of foreign bond purchasing activities by Japanese investors, focusing on the month of May 2025 and the broader context of the previous months. The data highlights the net inflow and outflow of foreign bonds and notes in different currencies and countries, as well as the role of various investor types in these transactions.

Main Points

• Net Purchases in May 2025: Japanese investors were net buyers of foreign bonds in May 2025, with a total net purchase of ¥3.987trn.

  • Banking accounts were the largest net buyers, contributing ¥3.004trn.
  • Trust accounts bought ¥577bn in foreign bonds but sold ¥544bn in equities and investment fund shares for rebalancing.
  • Lifers were also net buyers, with a purchase of ¥531bn, the largest since June 2019.

• Currency Breakdown for April 2025:

  • USD-denominated assets saw a net outflow of ¥794bn.
  • US sovereigns experienced a net outflow of ¥1.071trn, while other USD-denominated papers had positive flows.
  • EUR-denominated assets had a net outflow of ¥956bn.
  • German sovereigns saw a significant net selling of ¥1.476trn.
  • Italian papers also faced net selling.
  • GBP, AUD, and CAD had mixed flows, with GBP showing some demand.

• Country Breakdown for May 2025:

  • US had the highest net purchase of ¥3,313.8bn.
  • Germany saw a net selling of ¥2.0bn.
  • France had a net purchase of ¥201.1bn.
  • Italy saw a net purchase of ¥10.9bn.
  • Netherlands had a net purchase of ¥22.8bn.
  • UK had a net purchase of ¥40.6bn.
  • Australia saw a net purchase of ¥274.2bn.
  • Canada had a net outflow of ¥7.8bn.
  • Sweden had a net outflow of ¥15.9bn.
  • Denmark saw a net outflow of ¥16.2bn.
  • Switzerland had a net outflow of ¥0.7bn.
  • HK had a net purchase of ¥0.6bn.
  • Others had a net purchase of ¥107.3bn.

• Euro Area Geographical Breakdown for May 2025:

  • Germany saw a net outflow of ¥2.0bn.
  • France had a net outflow of ¥201.1bn.
  • Italy had a net purchase of ¥10.9bn.
  • Spain saw a net outflow of ¥198.6bn.
  • Belgium had a net outflow of ¥48.9bn.
  • Netherlands saw a net outflow of ¥518.4bn.
  • Austria had a net purchase of ¥9.1bn.
  • Finland had a net purchase of ¥14.2bn.
  • Ireland had a net purchase of ¥147.8bn.
  • Portugal had a net outflow of ¥17.2bn.
  • Greece had a net purchase of ¥0.0bn.
  • Luxembourg had a net purchase of ¥34.6bn.
  • Total net purchase for the euro area was ¥18.0bn.

• Currency Breakdown for May 2025:

  • USD had a net purchase of ¥3,113.2bn.
  • EUR had a net purchase of ¥43.9bn.
  • GBP had a net purchase of ¥23.4bn.
  • AUD had a net outflow of ¥242.2bn.
  • CAD had a net outflow of ¥6.3bn.
  • DKK had a net outflow of ¥16.3bn.
  • SEK had a net outflow of ¥34.6bn.
  • CHF had a net outflow of ¥0.9bn.
  • CNY had a net purchase of ¥122.4bn.
  • HKD had a net outflow of ¥0.3bn.
  • JPY had a net outflow of ¥145.3bn.
  • Others had a net purchase of ¥51.5bn.

Key Information

• The analysis is based on data from the Ministry of Finance (MoF) and the Bank of Japan (BoJ), with additional insights from Citi Research.
• The data includes monthly and cumulative net purchases of foreign bonds and notes, with a focus on the impact of different currencies and countries.
• The document includes various charts and tables to illustrate the trends and figures.
• There are important disclosures regarding the compensation and potential conflicts of interest for Citi analysts, emphasizing the independence of the research and the firm's role as a liquidity provider and issuer in certain financial instruments.

Analysts and Disclosures

• The primary analyst is Tomohisa Fujiki from Citigroup Global Markets Japan Inc.
• The report includes legal and compliance disclosures, highlighting the firm's role in financial markets and the potential for conflicts of interest.
• Analysts are not registered with FINRA for non-US markets, which may affect their ability to communicate with subject companies or make public appearances.
• The report also includes information on the proportion of "Buy," "Hold," "Sell," and "RV" recommendations over the past 12 months, indicating a balanced approach with a slight majority in "Hold" and "Sell" categories.

Summary of Trends

• Japanese investors showed a net buying trend in May 2025, especially in USD-denominated assets.
• There was a significant net selling in German sovereigns in April 2025.
• The euro area saw varied net purchases and sales, with some countries experiencing positive flows and others negative.
• The data reflects the dynamic nature of foreign bond investments, influenced by currency and market conditions.

This summary encapsulates the core content, main points, and key information from the provided document, focusing on the net foreign bond purchases by Japanese investors in May 2025 and the broader trends observed in the preceding months.