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Japanese funds have been the biggest buyers of foreign bonds since 2007, Bloomberg reported, citing data from the Ministry of Finance.
Japanese investors plan to buy the most foreign bonds in 17 years this month as the outlook for monetary policy overseas drives up debt and makes hedging against currency risk cheaper.
Japanese fund managers have bought securities for a fourth straight week through Aug. 23. If the pace of purchases continues, monthly net purchases would reach 6.83 trillion yen ($47.3 billion) in August, the highest since a record 9.56 trillion yen in September 2007.
Global debt has risen nearly 3% this month, with a similar rise in July when Federal Reserve Chairman Jerome Powell hinted at an impending rate cut.
The costs Japanese investors bear to protect themselves against a falling exchange rate have fallen because those costs are closely tied to the difference in short-term interest rates between Japan and other countries.
The yen has appreciated more than 10% against the dollar since falling to a four-year low in early July.
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