China reducing purchases of s/t Japanese debt but buying l/t again

The latest figures for August show that China has become a net seller of short-term Japanese bills, selling Yen2 trillion as opposed to buying Yen640billion the previous month. JGB purchases on the other hand were net Yen10billion purchases as opposed to net Yen55billion selling in July.

Overall activity seems to be reducing which may be a function of the strong Yen or may be because of Japanese displeasure at the increased activity in recent months.