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Abe Spurs Tripling of Overseas Debt Buying on Yen: Japan Credit
Shinzo Abe, the front-runner to become Japan’s next prime minister, is helping drive an almost tripling of foreign bond buying by local investors as he calls for central bank steps to fuel inflation and weaken the yen. Net purchases of overseas debt climbed 285 percent to 15.2 trillion yen ($185 billion) this year through Nov. 17, Ministry of Finance data show. Japan’s currency dropped 5.1 percent this quarter, boosting import costs and eroding demand for local securities. While Japan’s 20-year bond yield has climbed 1 1/2 basis points to 1.66 percent since the end of September, it’s lower than the 2.3 ... (full story)