China sold net $9.5b of Japanese debt in September

China was a net seller of Japanese sovereign debt in September for the second consecutive month, Bloomberg reported. Beijing sold a net US$9.5 billion worth of Japanese debt as concern grew that the yen would weaken after reaching a 15-year high of 80.22 yen to the US dollar on November 1. Low yields on Japan’s benchmark 10-year bonds – the yield stood at 0.96% Tuesday – make currency gains China’s only potential source of returns. China’s foreign exchange reserves reached US$2.65 trillion at the end of September. The Japanese currency hit a record high of 79.75 per dollar on April 19, 1995. On Tuesday it traded at 80.85.