S. Korea's bond issuance drops in April on U.S. monetary tightening
SEOUL, May 10 (Yonhap) -- Bond issuance in South Korea decreased in April from the previous month due to concerns about the U.S. monetary tightening, industry data showed Tuesday.
The value of bonds sold in Asia's fourth-largest economy came to 69.8 trillion won (US$54.6 billion) in April, down 900 billion won from a month ago, according to the data from the Korea Financial Investment Association.
The KOFIA attributed the issuance fall to the U.S. Federal Reserve's hawkish signal to raise the policy interest rates to rein in the high-flying price pressure.
In early May, the Fed raised its benchmark interest rate by a half-percentage point and indicated more rate hikes throughout the year.
Sales of government bonds dropped 2.9 trillion won to 25.7 trillion won in April, with those of special bonds decreasing 400 billion won to 7.8 trillion won.
But the issuance of corporate bond sales grew 700 billion won to 8.5 trillion won.
Sales of environment, social and governance (ESG) bonds declined by 70 billion won to 5.6 trillion won. ESG bonds are a type of sustainability debt offering aimed at financing corporate activities in environmentally friendly and sustainable projects.
As of end-April, the value of outstanding bonds in the country had stood at 2,548.8 trillion won, up 18.3 trillion won from a month ago.
Foreign investors bought a net 6.5 trillion won worth of South Korean bonds in April.
jwc@yna.co.kr
(END)
-
N. Korea's Kim holds talks with Russian defense minister on strengthening military cooperation: state media
-
BTS' V debuts No. 2 on Billboard 200
-
(2nd LD) N. Korea's Kim heads home after 'successful' visit to Russia: state media
-
(LEAD) N. Korea's Kim heads home after 'successful' visit to Russia: state media
-
N. Korea's Kim heads home after 'successful' visit to Russia: state media
-
24 teachers caught illegally selling exam questions to private educators
-
(LEAD) S. Korea, U.S. warn Pyongyang, Moscow's military cooperation violates UNSC resolutions
-
IAEA chief rules out Russia engaging in nuclear weapons technology trade with N. Korea
-
(URGENT) Opposition leader Lee Jae-myung taken to hospital as health worsens due to hunger strike
-
BTS' V debuts No. 2 on Billboard 200
-
USFK soldier, 2 women arrested for drug trafficking
-
(3rd LD) National Assembly passes arrest motion against opposition leader
-
(LEAD) U.S. to ensure S. Korean chipmakers' smooth operation regarding China curbs: deputy secretary
-
Yoon says arms deal between N. Korea, Russia would be 'direct provocation' against S. Korea
-
(LEAD) Fighter jet crashes in Seosan; pilot makes emergency escape