Japanese investors' domestic shift may have minimal impact on Eurozone bonds, despite BoJ's rate hike.

Japanese investors' domestic shift may have minimal impact on Eurozone bonds, despite Bank of Japan's rate hike. Japanese investors hold 1% of bond markets in France, Belgium, & Netherlands, and have already halved holdings in European bonds since 2022. European Central Bank's rate cuts, declining hedging costs, & continued Japanese interest in foreign bonds suggest stable to positive flows into Eurozone bonds.

March 22, 2024
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