ZCZC
BCN-41
S.KOREA-INVESTMENT-BOND
Foreign investment in S.Korean bonds hit 15-month high on eased
geopolitical risks
SEOUL, June 8, 2018 (BSS/Xinhua) – Foreign investment in South Korean bonds
hit the highest in 15 months last month amid eased geopolitical risks on the
Korean Peninsula, central bank data showed Friday.
Foreigners bought local bonds worth 3.05 billion U.S. dollars in May, the
biggest since February last year, according to the Bank of Korea (BOK).
It came amid emerging d‚tente on the peninsula after recent inter-Korean
summits on April 27 and May 26 between South Korean President Moon Jae-in and
top leader of the Democratic People’s Republic of Korea (DPRK) Kim Jong Un.
Kim and U.S. President Donald Trump were scheduled to hold the first-ever
DPRK-U.S. summit in Singapore on June 12.
Foreigners, however, sold local stocks worth 350 million dollars in May to
lock in profits.
Despite the easing geopolitical risks, the South Korean fell versus the
U.S. dollar last month on the strong U.S. dollar trend. The dollar index rose
1.9 percent against its major peers.
Volatility for the Korea won/dollar exchange rate was 0.34 percent in May,
down from the previous month.
Premium for credit default swap for South Korea’s five-year sovereign bonds
averaged 43 basis points in May, down 6 basis points from a month earlier.
BSS/XINHUA/HR/1452