Record $17.7 Billion Retail Bonds Fueled by Japan Inflation

Japanese companies sold a record amount of yen-denominated bonds targeting individuals this year, in the latest sign that sticky inflation is causing households to shift more of their $14.3 trillion of financial assets into riskier investments.

The note sales climbed to about ¥2.76 trillion ($17.7 billion) as of Dec. 10, surpassing last year’s full-year record of ¥2.73 trillion, according to data compiled by Bloomberg. With one gauge of Japanese inflation expectations surging to the highest in more than two decades earlier this month, individuals are turning increasingly to investments that offer higher potential returns than the meager 0.2% paid on regular deposits by large banks.