Logo of the Ministry of Finance and Economy / Yonhap
Foreign investors net purchased 8.5 trillion won ($5.7 billion) worth of Korean treasury bonds since the country began phased inclusion in the World Government Bond Index (WGBI), a key global bond benchmark run by FTSE Russell, the finance ministry said Thursday.
The net purchase of bonds occurred from March 30 through Tuesday, with 6.4 trillion won in settlements actually made between April 1 and Tuesday, according to the Ministry of Finance and Economy.
In April, Korea began its phased eight-month inclusion into the WGBI, a leading index that measures the performance of government bonds from over 20 major economies, including the United States, Japan and China, with an estimated $2.5 trillion to $3 trillion of funds tracking the index.
"Since the start of Korea's inclusion in the WGBI in April, foreign capital has been flowing in smoothly, contributing to stability in the domestic financial market, including a decline in government bond yields," a ministry official said during a WGBI monitoring and investment promotion task force meeting.
The official said the country expects to see more substantial capital inflows in May, calling for thorough preparations and efforts to manage external risks surrounding the ongoing conflict in the Middle East and monetary policies of major economies.
Source: Korea Times News
