Quarterly data from the Bank of Japan (BOJ) for flow of funds. A barrage of data via MNI:

  • Overseas investors increased their holdings of Japanese government debt by 5.8% on year in the second quarter of 2014
  • Financial assets at domestic households rose 2.7% from a year earlier
  • Balance of Japanese government bonds held by non-residents totaled Y86 trillion at the end of June, up from Y84 trillion at the end of March (accounted for 8.5% of the Y1,013 trillion in outstanding JGBs; little changed from 8.4% three months earlier)
  • Year-over-year increase in the balance of JGB holdings by overseas investors accelerated to 5.8% at the end of June from +2.6% at the end of March
  • The balance of JGBs held by domestic financial institutions at the end of June dropped 3.5% on year to Y584 trillion. Their share of outstanding JGBs was 57.7%, down from 58.8% in March
  • Holdings of Japanese equities by overseas investors totaled Y161 trillion at the end of June, up 13.3% on year. Three months earlier they increased their holdings by 22.4% on year to Y153 trillion.

Implications? Search me.’Cept everyone loves JGBs still.

Comments welcome.