Japanese investors remain net sellers of foreign debt in October

Japanese investors were net sellers of foreign bonds in October for a second straight month as overseas bond prices fell sharply amid expectations that the Federal Reserve would aggressively raise interest rates again to tame inflation.

According to data from Japan's Ministry of Finance, Japanese investors sold a net 2.58 trillion yen worth of overseas bonds in October marking a second straight month of net selling.

Graphic: Japanese investments in US and European assets - https://fingfx.thomsonreuters.com/gfx/mkt/znpnbdrjapl/Japaneseper cent20investmentsper cent20inper cent20overseasper cent20assets.jpg

The data showed life insurers sold a net 1.5 trillion yen, while trust accounts disposed 1.4 trillion yen.

Meanwhile, Japanese investors were net buyers in overseas equities last month with net purchases worth 875.1 billion yen, as stock markets rallied.

Between January and September, local investors sold a net 14.3 trillion yen in U.S. bonds and a net 2.3 trillion yen in European bonds, the data showed.

Graphic: Japanese investments in US and European assets - https://fingfx.thomsonreuters.com/gfx/mkt/gdvzqronopw/Japaneseper cent20investmentsper cent20inper cent20USper cent20andper cent20Europeanper cent20assets.jpg

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru)