Intriguing RV graphs: Effect and sustainability of recent surge in JGB purchase by non-residents
Key points
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Surge in JGB purchases among non-residents just before Lower House election; amid domestic selling pressure, non-residents holding back rise for super-long JGB yields
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Previously "passive buying" of super-long JGBs by non-residents, but this time possibly "aggressive buying" based on fiscal policy assessment
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But, momentum slowing after election; additional tailwinds surrounding fiscal discipline needed for non-residents to resume aggressive buying