Japanese investors sell most German bonds since 2014 in April
LONDON, June 9 (Reuters) - Japanese investors launched their largest monthly sell-off of German bonds in over a decade in April, data showed on Monday, a month after Germany's borrowing costs shot up in reaction to a debt-rule overhaul to ramp up spending.
Japanese investors sold nearly 1.5 trillion yen ($10.4 billion) of German bonds after accounting for purchases, according to data released by Japan's finance ministry, which Commerzbank said was the most since 2014.
Germany's decision to create a 500 billion euro ($546 billion) infrastructure fund and ease strict borrowing rules to boost defence spending sent its bond yields surging in March.
Japan's investors also sold nearly 1.1 trillion yen in long-term U.S. Treasuries, the data showed, the most since October, according to Commerzbank.
U.S. Treasury yields were whipsawed in April following U.S. President Donald Trump's so-called Liberation Day tariff announcements. They surged over 70 basis points (bps) in one week in April, raising questions about the safe haven status of the world's biggest government bond market.
German bond yields, meanwhile, dropped sharply that month as the market stood out as a safe-haven for investors amid U.S. Treasury volatility.
Japanese investors are the biggest foreign holder of U.S. Treasuries and a major holder of euro zone government bonds, so shifts in their investments are tracked closely by markets.
($1 = 144.1300 yen)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
15 minutes ago
- The Sun
Labour put Red Arrows' future at risk by failing to replace ageing Hawk jets, slams Shadow Defence Secretary
LABOUR were accused of putting the Red Arrows future at risk last night by failing to replace their ageing Hawk jets. Shadow Defence Secretary James Cartlidge slammed the government for 'dithering' after The Sun revealed the display team is running out of Hawk T1s. 6 6 6 He said: 'The Sun's revelations on Red Arrow availability show why Labour needs to stop dithering and actually get on with ordering a new RAF training jet. He added: 'They should commit to buying British so that renewal of the Red Arrows supports jobs and investment across the country.' Top Brass admitted the Red Arrows may be forced to cancel air shows to reduce the wear and tear on their surviving aircraft. The Hawk T1s entered service 50 years ago and the factory that made spare parts has closed. Ground crews have been forced to cannibalise parts from old planes to keep the best ones running. RAF sources denied industry claims the fleet could plummet to six working aircraft by 2028. They insisted the Red Arrows could keep 11 aircraft in service until 2030 by scrounging parts from older aircraft. But with a quarter of the fleet in maintenance at any one time, the display team would be unable to fly their trademark Diamond Nine formation. An industry source said the RAF's projections were 'wildly optimistic'. Labour's Strategic Defence Review demanded RAF replace its fleet of Hawk jets as soon as possible. A defence source close to John Healey said: 'We've been clear that we will deliver on all the SDR recommendations, a replacement jet worthy of our iconic Reds is no different.' Incredible moment Red Arrows jets soar over Buckingham Palace in stunning footage captured from inside the cockpit The only British contender is a concept jet known as the Aeralise Fast Jet Trainer. Critics claim Aeralis is Qatari owned and yet to make a prototype. An RAF spokesperson said: 'The Red Arrows will continue to use the Hawk to perform displays and flypasts until their out of service date and have sufficient aircraft in the fleet to do so. 'We continue to work closely with industry partners to ensure an appropriate number of aircraft will be available.' 6 6 6
Daily Mail
16 minutes ago
- Daily Mail
The six claims from Rachel Reeves that would never pass the test on a lie detector: ALEX BRUMMER
Rachel Reeves 's spending review was one of the most disingenuous statements I can remember in my long career as a financial journalist. In this deeply misleading review, the Chancellor used smoke and mirrors to disguise several key facts. A number of her claims would frankly fail a polygraph test. 1. She 'stabilised' the economy
The Independent
20 minutes ago
- The Independent
Police forces face financial struggle as cost of borrowing set to spiral
Police forces are facing 'difficult choices' and some will 'struggle to make the numbers add up' as the cost of borrowing spirals, one of Britain's most senior police officers has warned. Gavin Stephens, chairman of the National Police Chiefs' Council, said local forces have had no capital investment for 10 years. Some have increasingly relied on borrowing, and the cost of debt is expected to rise by 49% in the next three years. 'Forces' borrowing costs have been going up because for the last decade, local forces have had no capital investment at all. 'The main capital investment has gone to big projects at the centre. 'We know that to invest in the technology that they've needed, they've had to sell buildings, increase their borrowing costs. We see those rising. 'That's not an effective way of dealing with the problem, which is why we strongly encourage more capital investment into policing. 'We think investment in artificial intelligence and new technology will help us be more effective in keeping our communities safe. 'We know that if that doesn't change, then some forces will find it hard to make the numbers add up.' He said forces could need to cut back on tasks they carry out for other organisations, in the same way that they have already cut back on calls related to mental health. 'Policing is going to have to make some difficult choices as a consequence of this spending review. 'Of course, at the top of our list, preventing crime, reducing crime, investigating crime, is always going to be the first thing that we do. 'But over the years, policing has attracted many tasks on behalf of other organisations that we will need to look very closely at, in the same way we've done with our response to mental health in recent years. 'So there are some tough choices ahead for forces.' Details of how much funding each of the 43 forces in England and Wales will get will be decided in December. So far 3,000 of the 13,000 extra neighbourhood officers pledged by the Government have been recruited so far, but police leaders now doubt how the remainder will be paid for. One money-saving idea being put forward is a radical overhaul of the 43-force structure in England and Wales, to create fewer, larger forces. 'The last time we had a deliberate design of policing in England and Wales was in the early 1960s and for some time now, we've been advocating for significant change. 'There are forces that are finding it increasingly difficult to balance the budget, and we would say that more capable forces, bigger forces, are more likely to be financially sustainable in future. 'So we should look at all options to make sure that we can keep our community safe, not just from the threats that they face today, but the threats that we see coming down the track for the future.' Force chiefs want greater say over how they structure their workforces, with the removal of restrictions on ring-fenced funding that was granted by the previous government to replace officers cut during austerity. Mr Stephens said policing needs a variety of workers other than officers, including cyber specialists, crime scene investigators and digital forensic experts, in the same way that 'the health service is much more than just about doctors'. He added: 'We know that the Government had some very difficult choices to make, as a consequence of this, policing is going to have some very difficult choices to make too.'
