Japan Housing Finance Agency, the state-backed lender, plans to increase sales of mortgage bonds this year as part of a strategy to win overseas investors with higher yields than they get from Japanese government debt.

The Tokyo-based agency will target Asian central banks with 2.7 trillion yen ($30.4bn) of residential mortgage-backed securities in fiscal 2010 after raising about 1.7 trillion yen in the previous fiscal year, Katsuhiko Maeda, director-general of market operations, said in an interview.