Japanese Splurge on Foreign Bonds as U.S. Yields Near Record Low

  • Foreign bond buying comes on top of record purchases last week
  • Fukoku Mutual says it bought Treasuries as yen strengthened
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Japanese investors rushed into foreign debt for a second week, government figures showed, as benchmark Treasury yields held within a quarter percentage point of the record low.

Fund managers in the Asian nation bought a net 1.72 trillion yen ($16.2 billion) of medium- and long-term debt abroad in the seven days ended July 15, the Ministry of Finance said. They bought a record 2.55 trillion yen of debt the previous week, based on data on the ministry website that go back to 2005. MOF figures show Treasuries are their favored assets.