LONDON, Aug 25 : Japanese bond exchange traded funds have attracted a record $1.5 billion in net inflows in the year to date, Morningstar data showed on Tuesday, as rising government bond yields makes Japan's debt more attractive to investors. The sharp rise in Japanese government bond (JGB) yields "has coincided with a growing appetite for fixed income assets from European investors and a growing interest in diversifying away from traditional income sources like U.S. dollar assets," said Shannon Kirwin, senior principal, fixed income strategies at Morningstar. The 10-year JGB yield reached 2.93 per cent earlier this month, its highest since the mid 1990s according to LSEG data. "At the same time, uncertainty around the U.S. dollar’s safe-haven status has led investors to seek greater diversification in their fixed-income portfolios. Against this backdrop, Japanese bonds offer an attractive proposition: developed-market risk, substantial yields, and a counterweight to U.S. dollar dominance,” Kirwin said.