SEOUL, April 2 (Bernama-Yonhap) -- More than 4.4 trillion won (US$2.9 billion) in foreign capital has flowed into South Korea's bond market this week, financial authorities said Thursday, as the country began its phased inclusion in a key global government bond index managed by FTSE Russell.
According to Yonhap News Agency, on Wednesday, the country began its eight-month inclusion in the World Government Bond Index (WGBI), a move authorities believe will help stabilise the bond and foreign exchange markets.
Authorities said foreign investors purchased 4.4 trillion won worth of South Korean treasury bonds between Monday and Wednesday, led by Japanese investors.
"The government will closely monitor capital inflows through a joint task force involving relevant agencies," Finance Minister Koo Yun-choel said.
Koo made the remarks in a macroeconomic policy meeting attended by Bank of Korea Gov. Rhee Chang-yong and the heads of the Financial Services Commission and Financial Supervisory Service, according to the Ministry of Finance and Economy.
Authorities said volatility in the government bond market has started to ease despite heightened uncertainty stemming from tensions in the Middle East, following an emergency buyback of 5 trillion won.
The buyback was conducted in two tranches -- 2.5 trillion won on Friday and another 2.5 trillion won on Wednesday.
-- BERNAMA-ANADOLU
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