China Buys JGBs While Public Pension Fund Sells

China bought 541 billion yen ($6.17 billion) in Japanese government bonds in the first four month this year. Its aim is to diversify its massive foreign-currency reserves in the aftermath of the Greek government debt crisis. On the other hand, the Japanese public pension fund sold a net of 443.2 billion yen of government bonds in fiscal 2009 because reserves continued to dwindle amid rising benefits payments and falling investment returns. The fund held 79.5 trillion yen of JGBs at the end of 2009, or 11.9% of the outstanding balance.