BRICS: Japan enters the U.S. Bonds ‘Dumping’ Bandwagon

Kazuto Oku, CEO of the Japan’s Norinchukin Bank spoke about the U.S. bonds sale to a local news outlet. He confirmed that the bank will reduce interest-rate risk bets to safeguard its interests as the country is in financial turmoil.

The amount will now be diversified into corporate assets and not in U.S. and European sovereign bonds. The development is similar to that of BRICS member China, which has dumped nearly $73 billion in U.S. bonds.

We will “diversify into assets that take on corporate and individual credit risk,” said Oku to Bloomberg

Japan misjudged how long interest rates would stay elevated but a rise in foreign-currency funding wiped out returns from U.S. bonds bought when the yields were lower. Read here to know how much worth of U.S. bonds the BRICS alliance has dumped in the last two years.

(Watcher Guru)