Foreigners investing in South Korea net sold 12.9 billion won (US$11.9 million) in bonds from April 13 to 17, NH Investment and Securities Co., Ltd (NHIS) said on April 21. It is “the first net sale after the first week of this year,” the NHIS said.
As a result, the won bond balance held by foreigners increased by 44.5 billion won (US$41.1 million) from last week, reaching 102 trillion won (US$94.2 billion) in total, including the primary market, NHIS said. The difference between the net investment and balance is due to the risk premium, NHIS said.
Foreigners net sold 6.995 billion won (US$6.454 million) of treasury bonds, but net purchased 6.863 billion won (US$6.332 million) of monetary stabilization bonds (MSB), the NHIS said.
Foreigners also net purchased for all due dates, except for the “more than a year less than two years” interval and the “more than three years less than five years” interval, the NHIS said.
The duration of foreigners’ won bonds decreased to 2.81 from 2.84, NHIS said.
Last week, foreigners net sold 838 contracts of three-year Korean treasury bonds (cumulative net flow: 144,333), and 692 contracts of Korean treasury bonds (cumulative net flow: 14,019), the NHIS said.