Investors steer clear of Japan's economic woes

Foreign investors concerned about the continuing problems in Japan and the weakness of the yen are increasingly selling out of Japanese government bonds. Hajime Takata, chief strategist in the fixed income research department at Mizuho Securities, says the net selling of Japanese government bonds in January was the highest for nearly 12 months. He also points out that total foreign ownership of Japanese government bonds is relatively low, at 5% to 6%. Takata adds that the current spate of selling by foreign investors comes on the back of concern over a possible downgrade of Japan's...