Interest rate differentials have limited impact on Korea's bond market: BOK
- 5 years ago
Interest rate differentials have had a minor impact on overall capital flows into the Korean bond market....according to data from the Bank of Korea.
Factoring in variables,... including major countries' foreign reserves and global risks between 2008 and 2017,.... the BOK says.... interest rate differentials led to a decrease in short-term private capital balances of Korean bonds.... but didn't affect public capital balances such as.... bond purchases by foreign central banks.
The Bank of Korea added.... private capital's holdings of Korean bonds have fallen from over 50 percent before 2008 to less than five percent as of 2017 and the findings suggest.... the widening U.S.-Korea rate gap this year could also affect Korea's bond market.
Factoring in variables,... including major countries' foreign reserves and global risks between 2008 and 2017,.... the BOK says.... interest rate differentials led to a decrease in short-term private capital balances of Korean bonds.... but didn't affect public capital balances such as.... bond purchases by foreign central banks.
The Bank of Korea added.... private capital's holdings of Korean bonds have fallen from over 50 percent before 2008 to less than five percent as of 2017 and the findings suggest.... the widening U.S.-Korea rate gap this year could also affect Korea's bond market.