Foreign Investors Sell South Korean Bonds as Yield Advantage Fades

Foreign investors bought fewer South Korean bonds in August than they sold.

They sold about 839.7 billion won worth of bonds.

This was the first monthly net sale since January 2023.

Their total bond purchases for the year were still larger than their sales.

However, those purchases were lower than during the same period last year.

Investors earned less of an advantage from buying Korean bonds after protecting themselves from currency changes.

Money flowing into South Korea because of its planned bond-index inclusion helped reduce the selling.

South Korean stocks also fell as higher oil prices raised concerns about inflation.