Rise in U.S. Bond Investments Among South Korean Investors
South Korean investors have set a new record with their holdings in U.S. bonds reaching 17 trillion won, the highest since 2011. This surge in investment is primarily attributed to the Federal Reserve's anticipated interest rate cuts, which have served as a positive indicator for investors. Financial experts suggest that the Federal Reserve is likely to implement further rate cuts this December.
Notably, there has been substantial capital inflow into ETFs investing in long-term U.S. Treasury bonds. The recent 0.50% point reduction in the federal funds rate by the Federal Reserve in September 2023 has fueled expectations of continued interest rate declines, thereby increasing investment demand. South Korean investors are turning to long-term bonds in search of relatively stable returns, indicating the market's sustained trust in bonds.
The statistical data corroborates this trend, with South Korean investors' overseas U.S. bond holdings tripling from approximately $4.2 billion at the end of last year to around $11.7 billion now. This trend reflects how expectations of interest rate reductions continue to influence investment decisions, despite uncertainties in the global economic environment. Experts predict that this investment trend will continue, with interest rate-sensitive strategies gaining traction in the South Korean market.
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조선일보2024 12月 09
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