Go to Contents Go to Navigation

Foreigners become net sellers in S. Korean bond market in Sept.

All Headlines 12:00 October 12, 2018

SEOUL, Oct. 12 (Yonhap) -- Foreign investors were net sellers in the South Korean bond market for the first time in nine months in September amid concerns over global trade friction, the central bank said Friday.

Foreigners offloaded a net US$1.98 billion worth of South Korean debts last month, swinging from the net buying of $2 billion tallied in August, according to the Bank of Korea (BOK).

It was the first time in 2018 that net foreign holdings of South Korean bonds decreased. Offshore investors had been net buyers since January.

On the stock market, on the other hand, foreigners bought a net $560 million worth of local shares.

"The massive foreign selling was driven as their Treasurys reached maturity in early September," the BOK said in a release.

But the South Korean financial market became more volatile due to unstable external factors such as an escalating U.S.-China trade dispute and economic jitters in some emerging nations.

The average daily variation of the won-dollar rate, which shows the change from the previous session's closing price, came to 4.0 won in September, up from 3.5 won in the previous month.

Session-over-session changes in the dollar-won exchange rate averaged 0.36 percent last month, widening from 0.31 percent a month earlier, the BOK said.

The won finished at 1,134.0 won against the greenback on Wednesday, compared with 1,109.3 won at the end of September, the BOK said.

The credit default swaps premium for foreign exchange stabilization bonds dropped to 39 basis points in September from the previous month's 42, the bank added.

Foreigners become net sellers in S. Korean bond market in Sept. - 1


Send Feedback
How can we improve?
Thanks for your feedback!