Foreign investors turn to JGBs

17 Oct 2012

A shrinking pool of highly-rated debt and the potential for yield pickup is driving more foreign buyers to Japanese government bonds.

Foreign investors are increasing their exposure to Japanese government bonds (JGBs) attracted by their strong rating, good secondary market liquidity and the yield pickup offered by the basis swap, according to Goldman Sachs.

Foreign investors have substantially increased their allocation to JGBs in 2012 from being net sellers ...

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