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2 clusters · 8 sources · 21 days · First seen · Last updated

South Korean bond market volatility and foreign selling

Overview

South Korean government bond yields experienced volatility in late August 2026, driven by rising international yields, domestic supply concerns, and geopolitical instability in the Middle East. During this period, market participants focused on the Bank of Korea’s Monetary Policy Board meeting to determine the base interest rate and economic outlook.

By September 2026, the market saw a significant shift as foreign investors became net sellers of South Korean bonds for the first time since January 2023. This trend was attributed to a declining yield advantage of Korean bonds over U.S. assets when currency hedging is applied. While total Korean bond holdings saw a substantial decline, passive inflows from South Korea’s inclusion in the World Government Bond Index helped mitigate some of the selling pressure.

Entities

Bank of Korea · World Government Bond Index · Financial Supervisory Service · KOSPI · South Korea

Timeline

  1. 1 day ago

    [BUSINESS] 3 sources
    South Korean bonds see first foreign net selling since January 2023

    Foreign investors turned net sellers of South Korean bonds in August for the first time since early 2023, driven by a declining yield advantage over U.S. assets after currency hedging.

  2. 22 days ago

    [BUSINESS] 5 sources
    South Korea bond yields face volatility ahead of Bank of Korea rate decision

    South Korean bond yields face volatility amid rising global rates. Markets await the Bank of Korea's August 27 interest rate decision and economic outlook amid divided expectations.

Sources

bhaskarlive.in · biz.heraldcorp.com · imaeil.com · incheonilbo.com · joseilbo.com · koreaherald.com · socialnews.xyz · tokenpost.kr