International Transactions in Securities data from Japan's Ministry of Finance is due today at 2350GMT
At this time of year, Japanese fiscal year end (March 31), we expect to see strong repatriation flows of funds into Japan.
Last week, though, in this data we saw very strong demand for foreign stock and bonds, continuing what we have seen over previous weeks:
- Japanese investors bought Y314.7bn of foreign stocks in last week's data (week ended March 18)
- Japanese purchases of foreign bonds (Y2276.8bn) for that week were the highest recorded
The flows of capital out of Japan like this should weigh on the yen (to the extent the flow is not hedged), but the limited rallies in USD/JPY suggest otherwise.
Something to watch.