Banks post record net bond sales

JIJI

Major Japanese banks in April posted their biggest net sales of public and corporate bonds in the country since records began in 1998, an industry report showed Monday.

Net selling by major banks such as city banks totaled ¥5.1028 trillion, excluding short-term government securities, the Japan Securities Dealers Association said.

Their net sales of coupon-bearing government securities stood at ¥5.0209 trillion, the highest level since records began in 2004.

While city banks tend to sell bonds to take profits at the beginning of a fiscal year, the record selling excess came after they logged large net bond purchases in March, said an official at Mizuho Securities Co.

Meanwhile, foreign investors’ net buying of short-term Japanese government securities shrank to ¥12.6133 trillion from ¥13.4752 trillion a month before. Their net buying of superlong-term bonds came to ¥611.1 billion.

“Foreign investors eyeing capital gains stepped up their bond purchases, as interest rates were falling both in Japan and overseas,” the Mizuho official said.