April 11, 2013 / 3:30 AM / 4 years ago

CORRECTED-Japanese net selling of foreign bonds hits highest in a year

(Corrects the figures in third paragraph)
    TOKYO, April 11 (Reuters) - Japanese investors sold a net
1.145 trillion yen ($11.5 billion)worth of foreign bonds last
week, the biggest selling in a year, as they cashed in gains at
the start of Japan's financial year.
    They repatriated a total of 1.063 trillion yen in the week
through April 6, according to data from the Ministry of Finance
after deducting net buying in foreign equities and money market
instruments.
    Since the beginning of January, Japanese investors
repatriated 8.02 trillion yen, versus an outflow of 3.21
trillion yen last year.  
    But analysts said Japanese investors were more likely to
reinvest their money abroad to seek higher yield, rather than
ploughing it into Japanese government bonds (JGBs), after the
Bank of Japan last week unveiled sweeping monetary stimulus.  
    "Because the BOJ is going to buy such a large amount of
JGBs, there won't be many JGBs left for investors, so they will
have to increase buying in foreign bonds," said Minori Uchida,
chief FX analyst at the Bank of Tokyo-Mitsubishi UFJ. 
    During the week through April 6, foreign investors bought a
net 868.6 billion worth of Japanese equities.
 ($1 = 99.5050 Japanese yen)

 (Reporting by Dominic Lau and Hideyuki Sano; Editing by Alex
Richardson)

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