Japanese Funds Are Set to Buy Most Foreign Bonds Since 2007
- Weekly data point to more buying as Fed signals rate cut
- Stronger yen gives Japan funds firepower to invest: Westpac
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Japanese investors are set this month to buy the largest amount of foreign bonds in 17 years as the prospects for overseas monetary policies spur a rally in debt and a drop in currency hedging costs.
Fund managers in the Asian nation bought the securities for a fourth straight week through Aug. 23, a preliminary report from the Ministry of Finance showed on Thursday. Should the same pace of buying be maintained, monthly net purchases would total ¥6.83 trillion ($47.3 billion) in August, the most since buying reached a record ¥9.56 trillion in September 2007.