Barclays, BNP Sell Record Samurai Bonds as Yield Demand Trumps Europe Rise

As European markets dropped on friday on US consumer confidence news banks and utilities were especially hit hard. European banks sold an incredible amount of Yen bonds in Japan this quarter.

Barclays Plc, BNP Paribas SA and three other European commercial lenders raised 499.7 billion yen ($5.83 billion) in Japan since July 1.

A staggering amount of money for a recovering economy. Since the sell off Japan is in trouble and is dealing with the lowest domestic yields and spreads to date. However European banks and taking on more and more debt every year especially since buying Greek, Spanish and Portuguese bonds.

What are your thoughts? Do you think we are going to see a trend going back to the European bonds since banks are selling off the Yen Bonds? Also the Yen to USD has been a strong play this summer, now that all the bonds are being sold back is it still a strong play?