For example, American mutual-fund investors are switching from international equities into domestic bond funds.
The Barclays Capital U.S. Aggregate Bond Index is an investment-grade domestic bond index.
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The cleanup efforts come as Chinese companies are raising money in the domestic bond market at a record pace.
For emerging markets that have shallow deposit bases and undeveloped domestic bond markets, it all adds up to slower credit growth.
Although Vietnam has two stockmarkets and a domestic bond market, its companies are still too reliant on a ramshackle state banking sector another parallel with China.
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Once domestic bond investors regain consciousness and they will most likely do so in concert with foreign holders of US debt and currency a debt and dollar crisis will emerge.
Beijing also has opened the door wider for foreign investors to access the domestic bond market, though Chinese banks and mutual funds still make up the biggest chunk of buyers.
"There aren't any good reasons for Japanese life insurance firms to rush to invest overseas, given the recent rise in domestic government bond yields, " Mr. Noji added.
Ordinarily, a government faced with a shortfall would turn to domestic and international bond markets.
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The market now expects domestic Japanese Government Bond (JGB) holders to cash out and seek higher yield solace in U.S. Treasuries and other high-grade foreign bonds.
The sudden swing to hawkishness, which emerged in speeches delivered since the January meeting, helped push the domestic yield curve up and bond prices down as markets started to price in higher rates in the future.
Also, with bond yields so low, domestic investors are currently presented with fewer attractive options.
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The offender gradually moves from being a stranger using force to an acquaintance using seduction to a father-like or domestic figure using a family-like bond.
After all, for every net foreign purchase of a share or bond there must be a net domestic sale.
They are right up to a point: investors carry less currency risk if some of a bond's return is denominated in domestic currency.
Keep in mind that the expenses of a large-cap, domestic stock fund will be lower than those of an international bond fund, so compare funds only among their category peers.
Even if its net debt were zero, a government could still foster a liquid bond market by continuing to issue bonds and investing the proceeds in domestic or foreign private-sector assets.
Bond managers assess debt risk by performing discovery on what is the sustainable gross domestic growth for the country compared to its debt.
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Spain sold its first dollar-denominated bond in more than three years, in a deal that allows the country to trim its dependence on domestic investors.
Spain sold its first dollar-denominated bond in more than three years, in a deal that allows the country to trim its dependence on domestic investors and underlines continued appetite for higher-yielding debt.
But in the official model used by the European Commission, imposing a tax of 0.1 per cent on stocks and bond trades and 0.01 per cent on all derivatives is found to reduce long-run gross domestic product in the EU by 1.76 per cent.
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