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Currency Analyst since 2010

Foreigners reduced AUD bond holdings

The share of Australian debt held by foreigners fell to the lowest level in 2 1/2 years (68.9%) down from 70% 3 months earlier. It happened because global outlook improved and demand for the safety of the top-rated debt decreased. Foreign holdings of Australia’s debt peaked at a record 77% in June 2012 boosted by purchases from foreign central banks.

Japanese investors sold a net 1.2 trillion yen ($12 billion) of Australian securities in 6 months to March 31 as Prime Minister Shinzo Abe’s policies helped weaken the yen and drove up stock prices in the world’s third-biggest economy. However, after that the situation improved: according to Westpac, Japanese investors were net buyers of Australian bonds in May for the first time this year.

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