Foreign investors purchased more than 10 billion US dollars of South Korean stocks and bonds last year, central bank data showed Friday.
Foreign capital of $10.16 billion flowed into the South Korean stock and bond markets in 2019, up from an inflow of $8.25 billion in the previous year, according to the Bank of Korea (BOK).
Foreigners bought a net $8.16 billion of local bonds last year as the BOK cut its benchmark interest rate to a record low of 1.25 per cent in October, reports Xinhua.
The central bank lowered the policy rate from 1.75 per cent to 1.50 per cent in July. The lower bond yield leads to a higher bond price.
Foreign capital of $2.0 billion 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.
© 2020 - All Rights with The Financial Express