Korea GDP in Focus for Global Investors Piling Into Bond Market
- Strong print would put BOK hike back on the table for August
- Global funds have bought net $29 billon of local bonds in 2018
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A lone dissenter at the Bank of Korea’s July gathering is raising the specter of a rate hike as soon as next month, adding extra weight to this week’s growth figures for international bond investors who’ve piled into the local market.
Global fund managers seeking refuge from trade turmoil have scooped up more than $29 billion of the nation’s bonds this year, comforted by a slowing economy and central bank keeping policy tightening on hold. They’ve been rewarded with returns of about 1.1 percent year-to-date, versus losses of about 0.9 percent for emerging Asia government debt broadly, according to bond indexes compiled by Intercontinental Exchange.