South Korean investors’ investment in U.S. government bonds is rekindling as expectations for a U.S. rate cut grow. Amid the widespread perception that the U.S. stock market is overvalued, the relative attractiveness of bonds seems to be highlighted.
According to the Korea Securities Depository on the 10th, domestic investors net purchased a total of $3.69 billion (about 5.607 trillion won) worth of U.S. government bonds in the second quarter of this year. This is the largest quarter in history. In the first quarter, net purchases of U.S. stocks quadrupled that of bonds, but in the second quarter, net purchases of bonds outpaced stocks with $2.16 billion (about 2.9592 trillion won).
Last month, domestic investors bought a net $913 million (about 1.251 trillion won) worth of U.S. bonds, with the total balance of their holdings reaching $19.9127 million (about 27.886…
