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Japanese Funds Snap Up European Bonds 

August 4, 2014
Kosaku Narioka, Wall Street Journal

As European government-bond yields tumble to record lows, big fund managers in Tokyo are betting they haven't yet hit bottom.

The chronically low inflation in the 18-nation currency bloc reminds them of the nearly two decades of deflation at home after Japan's asset bubble popped in 1990, they say.

Armed with that experience and managing some of the world's biggest funds, Japanese investors have been snapping up euro-zone bonds at a rapid pace. They have bought $3.7 billion of Italian bonds this year through May, the most since at least 2005; $837 million of Spanish debt, the most since 2011, and $12 billion of French bonds, the biggest amount since 2012, according to the latest data available from the Bank of Japan.

Read more: Wall Street Journal

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