China in record Japan sovereign debt buy

BoyRacer · July 9, 2010, 8:31pm

China in record Japan sovereign debt buy -> ft.com/cms/s/0/8c861c30-8a5d … ftcamp=rss

China bought a record amount of Japanese government bonds in May, in an apparent move to shift more of its massive foreign exchange reserves into Japanese debt.
Chinese net purchases of Japanese government bonds soared to Y735.2bn ($8.3bn) in May, far outpacing the Y541bn in JGBs bought from January to April, according to Japanese finance ministry figures.
The increase in JGB purchases comes as China appears to be diversifying more of its $2,400bn in foreign exchange reserves away from US Treasuries and, more recently, euro-denominated assets, because of sovereign debt problems in Europe.
The move is significant as a possible sign that concerns about the future of the euro are pushing China to shift some of its reserves into yen-denominated assets. The single currency has been battered by market jitters since the Greek debt crisis. The yen has risen more than 20 per cent against the euro this year.

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