SEOUL, KOREA - The balance of bonds held by foreign investors has surpassed 100 trillion won for the first time. According to the Korea Financial Investment Association on June 5, the bond balance held by foreigners as of the end of May was 100.7 trillion won. It was largely due to an increase in net buying last year in preparation for bond holdings coming due this month.
Korea's sovereign credit rating upgrade, a cut in the benchmark rate, and expectations on a stronger won were also factors that brought in more foreign buying, the association said.
Of the net-bought volume, short-term bonds with duration shorter than one year accounted for 59 percent, or 3.6 trillion won, of the total. In contrast to active foreign buying, however, the overall mood of the bond market was subdued.
By nationality of foreign investors, the United States accounted for 21 percent with 20.5 trillion won, followed by Luxembourg and China with 16.7 and 12.3 percent respectively.
저작권자 © Korea IT Times 무단전재 및 재배포 금지
