Japanese investors dump record amount of U.S. bonds in February
TOKYO (Reuters) - Japanese investors sold a record amount of U.S. dollar bonds in February as the soaring cost of currency-hedging undercut yields while they extended their purchases of euro-denominated bonds, government data showed on Monday.
Investors sold 3.924 trillion yen ($36.68 billion) of U.S. dollar bonds in February but scooped up 1.059 trillion yen (8.06 billion euros) of euro-denominated bonds - which offer higher yields after currency hedging.
It was their fifth consecutive month of euro-denominated debt purchases.
Since October, investors offloaded 7.675 trillion yen ($71.72 billion) of dollar bonds and bought 4.079 trillion yen (31.06 billion euros) of euro bonds.