China has become the largest holder of Japanese bonds despite their ultra-low yield level. Demand for Japanese bonds has increased in favour of declining US bonds, which have traditionally been viewed as a safe haven. Chinese investors' net purchase of Japanese bonds last year reached JPY2.3tn of US ($98.4bn), marking its highest level since 2005. Following the US election in December Japanese investors sold JPY11.2tn bonds, marking the largest net sale since May 2013. Similarly, China's holdings of US bonds fell by $66bn in November last year to $1.05tn.
China has become the largest holder of Japanese bonds despite their ultra-low yield level. Demand for Japanese bonds has increased in favour of declining US bonds, which have traditionally been viewed as a safe haven. Chinese investors' net purchase of Japanese bonds last year reached JPY11.2tn ($98.4bn), marking its highest level since 2005. Following the US election in December Japanese investors sold JPY2.3tn of US bonds, marking the largest net sale since May 2013. Similarly, China's holdings of US bonds fell by $66bn in November last year to $1.05tn.