Retail Investors Flock to Bond Investments... Over 2 Trillion Won Bought in August

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] In August, the net purchase volume of individual bonds exceeded 2 trillion won.

According to the Korea Financial Investment Association on the 29th, as of August 1-26, the net purchase volume of individual bonds was recorded at 2.7452 trillion won. This is a 393.9% increase compared to the same month last year (555.8 billion won).

Since the second half of the year began, the scale of individual bond investments has further expanded. In less than two months, it has surpassed the net purchase volume of the first half of the year. The net purchase volume of individual bonds in the first half of this year was 5.0398 trillion won. Following July (2.9977 trillion won), the monthly net purchase volume of individual bonds has approached 3 trillion won for two consecutive months.

As expectations for a Fed pivot quickly retreat, the bond market is expected to maintain high volatility until the September Federal Open Market Committee (FOMC) meeting. The outcome of the September FOMC is the most important variable.

Nevertheless, investment sentiment in the bond market is expected to continue. An asset management company official said, "Individuals are directly purchasing bonds or increasing investments in bond ETFs," adding, "This is interpreted as a judgment that safe assets are more advantageous for yield protection than risk assets (stocks)."

This content was produced with the assistance of AI translation services.