The share of Japanese public and corporate bonds traded by foreign investors in 2006 hit a record high 9.1 %, according to reports in the Nikkei newspaper in Tokyo.
The share of bond trading taken by foreign investors in 2006 rose by 1.2 percentage points, from 7.9 % a year ago, and hit the highest level since 1995. JGBs account for over 90 % of trading amount of public and corporate bonds.
“Interest-sensitive foreign investors are likely to be more influential over Japan’s interest rates, since long-term interest rates tend to reflect the bond market,” says a spokesman for Mizuho Corporate Bank in Tokyo.