Economics class: Japanese investors buy UK government bonds at record rate in early 2021
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Specification:
Fiscal policy, exchange rates
Click to read the article below and then answer the questions:
Japanese investors buy UK government bonds at record rate in early 2021
Explain why the UK government issues bonds.
What proportion of UK bonds are held by overseas investors?
The chart illustrates that Japanese investors have been buying UK government bonds at a record clip. Using a diagram, analyse the effects of this buying spree on the UK bond market.
Hideki Kishida refers to currency risk. Explain why a volatile £:¥ exchange rate would deter Japanese investors from purchasing UK assets.
Gavin Clarke, Emmanuel College
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