Foreigners Pause Japan Bond Futures Selloff But Outlook Bearish

  • Funds turned net buyers after longest period of selling streak
  • Falling yen imposes more pressure on BOJ to take policy action
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Foreign investors became net buyers of Japanese government bond futures, putting a stop to their longest selling spree on record, but this is unlikely to signal a turnaround in sentiment.

Global funds purchased a net ¥398 billion ($2.6 billion) of 10-year debt futures in the week through May 3 after dumping them for 12 straight weeks, which was the longest stretch in Japan Exchange Group Inc. data going back to 2014.