September 22, 2010

Banks' Net JGB Buying Hits Record In 1st Half

Domestic banks bought 14.5 trillion yen more in Japanese government bonds than they sold in the January-June period, the largest net purchase for a half year since comparable dates became available in 2004, according to Nikkei. The data highlights the lackluster situation in which the banks had little choice but to invest idle cash in JGBs as businesses and individuals, lacking confidence in Japan's economic outlook, refrained from borrowing.

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