How to Trade the Other Sovereign Debt Mess By: Kelley Holland
http://www.cnbc.com/id/43113097
Video:
http://www.cnbc.com/id/15840232?play=1&video=3000023946
China Behind Massive Foreign Buying in Japanese Bonds By: Reuters
http://www.cnbc.com/id/43213037
Some lines extracted from this article:
Foreigners bought a net 4.696 trillion yen ($57.7 billion) of Japanese bonds in the five weeks to May 20, a record amount of purchases for any five consecutive weeks since data began to be compiled in its current form in 2005.
"As the euro started to suffer from debt problems again, some reserve managers could have shifted some of their euro-denominated to assets to the yen," said Makoto Noji, senior strategist at SMBC Nikko Securities.
This was similar to last year when China's foray in the short-term yen market coincided with worries about Greece's ability to pay back debt.
But China quickly moved out of that position, selling a large amount of yen bills in August to take profits after the yen rose. Market players said at that the time China was unlikely to keep a large amount of funds in the yen because yields were low.
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