Japan remains the largest foreigner with the US public debt with a portfolio of 1.1 trillion dollars, so its actions in the market are closely monitored as an indicator of the general mood.
In early April, Japanese private investors, including banks and pension funds, sold more than $ 20 billion of foreign bonds. It has been one of the largest waves of sales since 2005, the preliminary data of Japan’s Ministry of Finance testified. The Financial Times reported this on Tuesday, April 22.
The reason for the huge -scale exit from bonds is sharp shock -change in stock and debt markets after US President Donald Trump declared new tariffs on April 2 -the very important “day of release.”
One week before April 4, foreign bonds were sold at $ 17.5 billion, another $ 3.6 billion in the next seven days. According to analysts, a significant portion of these sales reminds American state units or bonds of US agencies, the guarantee where the government is.
Japan remains the largest external public debt in the US with a portfolio of $ 1.1 trillion, so its actions in the market are carefully monitored as an indicator of the general mood.
A sharp collapse in the S&P 500 index of 12% during the first four days of trade after the tariff announcement, as well as an increase in the yield of 10-year-old American states from the maximum since 2001, has resulted in a change of investment portfolios.
Investors believe that Japanese pension funds can sell properties for balancing portfolios due to dropping prices for American promotions. Part of sales is also associated with the expansion of fence techniques, specifically carries trade – investing in more profitable markets with borrowed funds from Japan.
At the same time, despite the size of sales, Moody analysts note that for the American debt market ($ 1 trillion shift day -day), these volumes are moderate and cannot be the only reason for jumping profitability.
Earlier, Ministers of the Japan, China and South Korea industry discussed the free trade agreement with Seoul.
Trade zones can be free to protect against US aggressive policy
News from CORRESPONDENT.NET On the telegram and whatsapp. Subscribe to our channels https://t.me/KorresPondentNet and WhatsApp
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.