The Japanese Ministry of Finance (MoF) is to take its JGB roadshow to Singapore and Hong Kong in late May. The details are yet to be announced, but the events follow expeditions to London and New York in January this year.
“Currently, JGB holdings by foreign investors account for only about 4% of the JGB market,” explains a spokesman for Bank of Tokyo Mitsubishi in Tokyo. “As Japan enters the era of large-scale JGB issuance, mainly for re-financing of bonds, MoF wants to broaden the investor base among foreign investors. This time, MOF seeks to expand JGB investment among Asian countries. As many central banks in Asian countries tend to manage foreign currency from their trade surplus in US Treasuries, MOF intends to promote JGBs as part of their international portfolio for diversified investment.”