Japanese investors seek higher yields in Australia

Given the depressed low yield returns in Japan, Japanese investors are perceiving the much higher yields in Australia as an attractive investment, Bloomberg reports in an article today.

“Many Japanese investors, including ourselves, will buy Australian government bonds,” said Toshifumi Sugimoto, the chief investment officer at Capital Asset Management in Tokyo, Bloomberg reports. The exchange rate makes the investments “very attractive", Sugimoto adds.

Bloomberg also quotes Hideaki Kuriki, a bond investor in Tokyo for Sumitomo Mitsui Trust Asset Management, noting "now is a good time” to buy Australian bonds; this level is very attractive.”