Japan Post Bank buys foreign bonds

Japan Post Bank Co.'s holdings of foreign government bonds nearly tripled in fiscal 2009, apparently in line with a government policy to diversify its investment portfolio.

The bank owned 3.71 trillion yen ($40 billion) worth of foreign government bonds at the end of March, up from 1.28 trillion yen a year earlier. It was the largest amount since Japan Post, the predecessor of the current Japan Post group, was set up in 2003.

Yen-denominated bonds issued by foreign governments accounted for about 70 percent of the total.

The bank's holdings of U.S. Treasury bills and other dollar-based bonds increased sharply from 31 billion yen at the end of September to 870 billion yen at the end of March.

Japan Post Bank currently invests 80 percent of the 190 trillion yen it holds in postal savings in Japanese government bonds, which yield low returns.