Data released by Japan’s Ministry of Finance in February showed China has bought the largest amount of short-term Japanese debt in February since May 2010, Bloomberg reported. China, the world’s largest holder of foreign exchange reserves, increased net purchases of short-term debt to 651 billion yen (US$8 billion), the highest since it purchased 694.8 billion yen in May 2010. China sold 268.8 billion yen of medium- and long-term Japanese bonds in February. This spike in short-term debt purchases may have occurred due to the cheaper yen, said Akihiko Inoue, chief strategist in Tokyo at Mizuho Investors Securities (8607.TYO). “The yen fell in February after the Bank of Japan eased policy,” Inoue said. In March, officials in Japan and China pledged to increase holdings of each other’s government debt as they pursue closer economic cooperation.