NEWS: Japanese investors sell super German bonds in July.
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Japanese investors continued to sell German bonds in July to buy relatively high-yielding French bonds, according to data released Monday by the Ministry of Finance.
Investors sell over 288 billion 400 million yen ($2 billion 600 million) of German bonds for fourth consecutive months.
Japanese investors bought a net yen of 615 billion 100 million yen in July for second months in a row.
"Japanese investors have increased their selling of German bonds, and the 10-year yield has fallen from 0.7% at the start of the year to about 0.3% in July," said Yuji Yamazaki, an interest rate analyst at SMBC Nikko Securities.
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"The recent trend in European bond investment has shifted from German bonds to other countries with better returns, particularly French and Dutch bonds."
The 10 year French bond yield was 0.76% higher in July, while Holland's yield to Treasury bond rose to 0.55%.
Japan's Ministry of finance data showed that Japanese investors bought a net yen of 82 billion 100 million yen in Holland in July.
Japanese investors bought over 703 billion 800 million yen U.S. bonds in July and sold it for the first time in three months.
But they are still oversold this year and have sold more than 6 trillion yen of U.S. bonds so far in 2018 as the Fed is expected to continue tightening monetary policy.