Japan Foreign Bond Investment

Info

History

Chart

Impact:

Low

Source: Ministry of Finance, Japan

Next Release:

Date:

Period: Jun/28

What Does It Measure?

Japan Foreign Bond Investment measures the net flow of capital from Japan into foreign bond markets, indicating the level of investment by Japanese residents and entities in non-Japanese fixed-income securities. It primarily focuses on assessing capital outflows, investment trends, and the appetite for foreign debt, providing insights into investor sentiment and portfolio diversification strategies.

Frequency

This indicator is released monthly, with the data typically published around the 8th to the 12th of the month following the reporting period as a preliminary estimate, subject to revisions later.

Why Do Traders Care?

Foreign bond investment levels can significantly influence the demand for foreign currencies and impact the yields on global bond markets. A higher-than-expected investment typically suggests increased confidence in foreign markets, which can strengthen the foreign currency against the yen, while lower-than-expected figures may indicate risk aversion, leading to weakened foreign currencies and potential impacts on stock markets.

What Is It Derived From?

This indicator is calculated based on data collected from financial institutions and the Bank of Japan, aggregating the investment flows into foreign bonds made by Japanese investors, including both retail and institutional investors. The calculations involve survey data and transaction records, ensuring comprehensive coverage of the market activities in bond investments.

Description

The Japan Foreign Bond Investment report presents crucial insights into Japanese investors' behavior regarding international fixed-income markets. This indicator is essential for gauging how domestic economic conditions influence capital allocation choices, as higher foreign bond investments can reflect a search for better yields or diversification away from domestic securities.

Additional Notes

This indicator serves as a leading measure of international investment trends, providing an early signal of shifts in capital flows that may affect exchange rates and global interest rates. It is closely watched in relation to other external investment indicators and can serve as a barometer for economic confidence and geopolitical considerations.

Bullish or Bearish for Currency and Stocks

Higher than expected: Bearish for Yen, Bullish for Stocks. Lower than expected: Bullish for Yen, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number	Better than forecast for the currency (or previous revise better)
Red Number	Worse than forecast for the currency (or previous revise better)
Hawkish	Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish	Favors lower rates to boost growth, weakening the currency but lifting stocks.

Date	Time	Actual	Forecast	Previous	Surprise