South Korea's Treasury Bond Market Shows Resilience

Amid global financial uncertainties, South Korea's treasury bond market is attracting significant interest from foreign investors. This surge is attributed to expectations of interest rate cuts by the Bank of Korea and the perceived undervaluation of the won.

Yield Trends Highlight Market Dynamics

As of April 22, South Korea’s 10-year treasury bond yield decreased by approximately 0.19 percentage points, contrasting with the U.S. 10-year bond yield's rise. The 3-year treasury bond yield hit its lowest level since March 2022.

Foreign Investments on the Rise

Foreign investors have actively purchased domestic treasury bonds and futures, with net purchases reaching 10.367 trillion won as of April 21. Analysts suggest economic slowdown expectations and potential won appreciation are driving these trends.

Speculations Around Chinese Investments

Market speculation suggests Chinese institutional funds might be investing in Korean treasury bonds after selling U.S. treasury bonds, though this remains unconfirmed due to the anonymity of foreign bond investments.