Another part of the story is action ahead of the end of the Japanese fiscal year on March 31. It is widely known that Japanese money managers and investors often repatriate funds ahead of their fiscal year-end in order to take profits on foreign investments.
“According to data from Japan’s Ministry of Finance, Japanese residents sold a net 2.2 trillion yen (roughly $19 billion) foreign bonds in the five weeks ending March 2,” Callow says. “So, the infamous and over-discussed carry trade was only part of the story.”
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