Seoul - Bond sales in South Korea saw a decline in October as investor concerns mounted over sustained high interest rates. The Korea Financial Investment Association (KOFIA) reported that the value of bonds sold in the country last month amounted to 68.1 trillion won (US$51.7 billion), a decrease from the previous month.
According to Yonhap news Agency, the drop in bond sales reflects investor apprehension regarding the potential for continued high-interest rates.
The yield on three-year Treasury bonds rose to 4.085 percent in October, marking an increase from the previous month. Corporate bond issuance experienced a notable decrease, primarily due to higher bond interest rates. While AAA-grade corporate bonds saw a marginal increase, AA and A-grade bonds witnessed significant declines. Demand forecasting for corporate bonds showed an uptick in October compared to the same period last year. Individual investors and foreigners continued to purchase bonds, with foreigners acquiring a substantial portion of government bonds during the month. This trend highlights the shifting dynamics in the bond market amidst a challenging interest rate environment.