00:09korea
00:3061.3 trillion won in offshore stock holdings this year it's thursday september 3rd here's why global
00:38investors are paying attention to korea today middle east tensions and rising u.s treasury
00:43yields have pushed global risk sentiment into retreat mode the 10-year u.s treasury yield
00:49broke above 4.80 percent today its highest level since early last year while wti crude topped 91
00:57a barrel that combination of high rates and high oil prices is exactly what's been hitting emerging
01:03markets like korea hardest this week here's what the numbers show cosby closed at 6562.72 today down
01:123.99 or 273.08 points with foreign and institutional investors combining to sell more than 3.9 trillion
01:22one of shares foreign and institutional investors have net sold a combined 13.9 trillion one
01:28since sk hynix began its buyback program on august 20th the etfewy the largest u.s listed korea fund
01:37saw net inflows collapse 92.3 percent in august following a record july inflow of roughly 4.77
01:46billion dollars the three-year korean treasury bond yield rose to 3.930 percent its highest level
01:53this year while the 10-year yield climbed to 4.418 percent domestic bond funds bled 385.1 billion one
02:01over the past month while ultra short duration bond funds absorbed 648 billion one of new money
02:07as investors shortened duration to avoid rate risk overseas stock account filings hit 61.3 trillion one this
02:15year up 27.4 percent from a year earlier accounting for 57.2 of all reported offshore
02:22assets so what does this mean for global investors weighing exposure to korea earlier we said korean
02:29investors themselves are pulling money offshore that capital flight signals confidence in korea's own
02:34market is thin right now if u.s and global bond yields keep climbing expect further one weakness in
02:41higher hedging costs for anyone holding unhedged cosby exposure watch whether the sell-off in ultra
02:47short bond funds versus government bonds spreads into equities a rotation toward defensive positioning
02:54could deepen before it reverses first the bank of korea's next rate decision with markets pricing
03:00further tightening toward 3.50 percent by early next year second whether ewy inflows recover in september
03:08after august collapse third the 10-year u.s treasury yield a break above 4.80 percent could trigger
03:16another leg of emerging market outflows that's today's ai prism global investors this episode was
03:23produced with ai assistance based on sole economic daily reporting and reviewed by a human editor
03:29ai prism is a juan ifra award-winning series we'll be back tomorrow you've been listening to ai prism
03:35ai prism from seoul economic daily
