Jan 14 Reuters Japanese investors net sold foreign stocks and bonds for a third straight month in December, wary of rising U.S. bond yields, while some also booked profits amid sharp fluctuations in the yen.

The investors sold overseas equities worth a net 310.7 billion yen 1.97 billion following net disposals of 1.22 trillion yen, a month ago, according to data from Japan39;s Ministry of Finance. They also ditched 1.22 trillion yen worth of bonds, the most since October, 2024.

Japanese trust accounts continued their trend, offloading a net 1.52 trillion yen worth of foreign stocks, marking their fourth consecutive month of net sales. Conversely, investment trust management companies and life insurers acquired 909.9 billion yen and 137.5 billion yen worth of shares, respectively.

In 2024, Japanese investors were net sellers of foreign equities, offloading about 3.48 trillion yen, with the bulk of sales stocks worth 3.9 trillion yen in the last quarter. Conversely, they purchased overseas bonds worth 4.16 trillion yen throughout the year.

Towards the yearend, investors scaled back their expectations for the Federal Reserve39;s interest rate cuts, influenced by the potential for increased inflation due to the tariff, migration, and tax policies of the incoming U.S. Presidentelect Donald Trump39;s administration.

Last week, minutes from the Fed39;s Dec. 1718 meeting highlighted officials39; increasing concerns about persistent price pressures and the potential effects…