September 11, 2017 / 9:01 PM / 10 months ago

S.Korea sees outflow in bonds for first time in 8 months in August

SEOUL, Sept 12 (Reuters) - Foreign investors ended a seven-month long buying spree and turned into net sellers of South Korean bonds in August as many redeemed their holdings at maturity, official data showed on Tuesday.

Offshore investors’ bond holdings decreased by a net 2.2 trillion won ($1.94 billion) in August, according to the Financial Supervisory Service (FSS). In July, there was a net increase of 2.7 trillion won.

FSS said that redemption of monetary stabilisation bonds (MSBs) at maturity more than offset new purchases.

During August, investors in Europe trimmed 1.6 trillion won worth of South Korean bonds, while those in North America cut 1.1 trillion won.

By region, investors from Asia remained the largest, holding 41.8 trillion won of domestic bonds. Investors in Europe and North America held 34.6 trillion won and 11.7 trillion won, respectively.

By category, investors held 81.1 trillion won of treasury bonds and 22.5 trillion won of MSBs as of end-August.

Last month, foreign investors also turned into sellers of domestic stocks amid escalating tensions in the Korean peninsula due to North Korea’s actions. They unloaded a net 2.4 trillion won during August after buying a net 5.8 trillion won worth a month earlier. ($1 = 1,131.87 won) (Reporting by Dahee Kim; Editing by Richard Borsuk)

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