Japanese investors sell record amount of euro-denominated bonds in March

Investors in Japan sold 1.96 trillion yen ($19.2 billion) worth of euro-denominated long & medium-term bonds in the month of March this year, fresh data released by Ministry of Finance revealed.

The figure set a new record of euro-denominated long & medium-term bond sales in March. In March 2013, Japanese investors had purchased a net 5.39 trillion yen of such bonds. In addition, they sold 481.1 billion yen worth of Dutch sovereign bonds and 71.6 billion yen worth of Italian debt.

Ayako Sera, a market strategist at Sumitomo Mitsui Trust Bank Limited in Tokyo, said that the Ukraine crisis might have played a part in the situation of Japanese bonds market.

Commenting on the fresh data, Sera said, "The situation in Ukraine may have played a part. It is possible Japanese money will be forced to go back into some of the higher yielding countries in the region going forward. The global hunt for yield is likely to continue for some time."

In March, President Vladimir Putin annexed Crimea, which set off the most severe confrontation between Russia and the United States & its European allies since the Cold War. After hailing a large majority in favor of secession, Russia recently dismissed Kiev government as illegitimate.

Data from the finance ministry also revealed that that the country's current account surplus in March stood at 116.4 billion yen.

In response to the data, Japanese yen on Monday slipped 0.1 per cent to 140.28 per euro and 0.1 per cent to 101.97 per U. S. dollar.