Foreign fund flows into S.Korean bond market in 3 months

Source: Xinhua| 2019-04-10 13:57:26|Editor: Xiaoxia
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SEOUL, April 10 (Xinhua) -- Foreign fund flowed into South Korea's bond market for the first time in three months as risk-averse sentiment deepened on worry about global economic slump, central bank data showed Wednesday.

Foreigners made a net investment of 1.31 billion U.S. dollars in local bonds in March, the first foreign purchase this year, according to the Bank of Korea (BOK).

It came as foreign investors moved into safe haven assets amid rising concern about global economic slowdown.

Foreign fund flowing into the local stock market tumbled to 20 million dollars in March from 1.51 billion dollars in the previous month amid the risk-averse sentiment.

The South Korean currency depreciated versus the U.S. dollar. The won/dollar exchange rate closed at 1,144.7 won per dollar as of Monday, up 9.6 won from 1,135.1 won tallied at the end of March.

Premium on the 5-year credit default swap (CDS), which gauges sovereign risks, averaged 30 basis points in March, down 1 basis point from the previous month.

The daily average transaction in the inter-bank foreign exchange market stood at 26.27 billion dollars in the January-March quarter, up 2.47 billion dollars from the prior quarter.