Photo/Illutration Light is cast on a U.S. one-hundred dollar bill next to a Japanese 10,000 yen banknote in this picture illustration shot February 28, 2013. (REUTERS)

Demand for Japanese bonds surged to a two-year high in the week through March 15, driven by safe-haven appeal due to growing concerns over the potential economic impact from changes in U.S. tariff policies and a broad selloff in equities.

Foreigners net bought long-term Japanese bonds worth 3.4 trillion yen ($22.82 billion) in their largest weekly net purchase in two years, data from Japan’s Ministry of Finance showed.

Short-term Japanese bonds, however, witnessed 2.26 trillion-yen worth of outflows, the biggest weekly net foreign sales in nearly seven months.

Foreigners also pulled out 1.81 trillion yen from Japanese equities, the highest in a week since September 21.

Japanese investors, meanwhile, divested foreign equities worth a net 752.5 billion yen following four consecutive weekly net purchases.

They also sold 87.6 billion yen worth of foreign long-term debt securities, but snapped up about 128.7 billion yen worth of short-term bills.

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