SEOUL, Jan. 10 (Xinhua) -- Foreign investors purchased more than 10 billion U.S. dollars of South Korean stocks and bonds last year, central bank data showed Friday.
Foreign capital of 10.16 billion dollars flowed into the South Korean stock and bond markets in 2019, up from an inflow of 8.25 billion dollars in the previous year, according to the Bank of Korea (BOK).
Foreigners bought a net 8.16 billion dollars of local bonds last year as the BOK cut its benchmark interest rate to a record low of 1.25 percent in October.
The central bank lowered the policy rate from 1.75 percent to 1.50 percent in July. The lower bond yield leads to a higher bond price.
Foreign capital of 2 billion dollars flowed into the domestic stock market.
Premium for five-year credit default swap, which gauges credit risk for government bonds, averaged 24 basis points in December, marking the lowest since October 2007.
