A rare European Central Bank warning about the bond market risk of a Bank of Japan policy change comes at a time when Japanese outflows from the region are already at record levels.
Investors from the Asian nation offloaded 5.4 trillion yen ($38.7 billion) of European bonds in 2022, the most according to Bloomberg-compiled data going back to 2005. While Japanese funds have been net buyers so far this year, they’ve spent a mere 81 billion yen on purchases — the lowest amount for a first quarter in six years.
Read More : ECB Issues Warning on Potential Impact of BOJ Policy Change on Global Bond Markets