Korea, Thailand Lure Bond Flows Amid Current Account Surpluses
- Foreign funds have pumped $5.8 billion into nations’ debt
- Bullish outlook for won, baht adding to allure: Shinkin Asset
The Sathorn district of Bangkok, Thailand, on Jan. 30.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
When it comes to Asian bonds right now, getting the highest yield doesn’t seem to be the top priority. As investors pile back into emerging debt, the two nations luring the most money have some of the lowest rates.
Foreign funds have pumped $3.6 billion into South Korean sovereign notes in 2017, the most in developing-nation Asia, while the $2.2 billion of flows into Thailand are the largest since the same period in 2013. Along with Taiwan, where there’s no comparable figures available, the two countries are the only emerging markets in the region with 10-year yields of less than 3 percent.