00:06korea's finance ministry just promised an emergency intervention if bond yields keep
00:12spiking the pledge came the same day foreign investors sold another 2.9 trillion won of korean
00:19stocks korea's government bond yields are now decoupling from u.s treasuries in a way strategists
00:26are calling attractive korean companies sent 32 percent more capital abroad last quarter than a
00:33year earlier if you're weighing your korea exposure right now three different signals are pointing in
00:39three different directions it's wednesday september 30th here's why global investors are paying
00:45attention to korea today korea's 10-year treasury note yield has climbed alongside a global bond
00:52sell-off but deputy prime minister lee hyung-il told a cabinet meeting today that the government
00:58will deploy emergency buybacks if the increase becomes excessive the pledge came a day after
01:04korean yields spiked sharply in catch-up trading and it arrived alongside a dovish surprise from
01:11australia's central bank that pulled global sovereign yields lower in tandem at the same time foreign
01:18investors extended a two-day selling streak in korean equities even as data released today showed
01:24korean companies expanding their overseas investment footprint at the fastest pace in over a year here's
01:31what the numbers show korea's three-year treasury bond yield fell 0.043 percentage points to 4.076
01:40while the five-year dropped to 4.276 and the 10-year to 4.476 reversing part of the prior
01:50session spike
01:52the reserve bank of australia raised its policy rate by 0.25 percentage points but signaled limited
01:59room for further hikes pulling australian and by spillover korean bond yields lower the u.s 10-year
02:07treasury yield remains above 5.2 percent its highest level since 2007 and continues to weigh on korean rate
02:15direction as an external pressure point president ej myung said today that korea's excess tax revenue
02:23will fund housing stability jobs and inclusive finance rather than accelerated bond redemption
02:30dampening market hopes for more than 10 trillion won in debt pay down foreign investors net sold 2.903
02:39trillion won of korean equities on the cosby extending a two-session selling streak worth more than 3 trillion
02:46won on the prior day alone korean firms sent 20.52 billion u.s dollars abroad in the second quarter
02:54up 32.3
02:56year on year and the fourth straight quarter of growth led by 10.48 billion dollars from the financial
03:04and insurance sector investment into the united states alone rose 53.6 to 8.86 billion dollars the
03:14single largest destination underscoring how korean capital keeps flowing outward even as foreign capital
03:21flows out of korean equities so what does this mean for global investors watching korea earlier we said
03:28three signals are pointing in three different directions here's what that actually means for you
03:34falling korean bond yields alongside a buyback backstop make local rates more attractive on a
03:39relative value basis even as equity outflows and rising outbound korean fdi both suggest domestic
03:47investors and companies see better opportunities elsewhere right now watch three things tomorrow's tax
03:54revenue re-estimate for any signal on bond supply whether u.s treasury yields hold above 5.2 percent
04:02and keep pressuring korean rates upward and whether foreign equity selling eases once samsung's late
04:09october dividend announcement clarifies the shareholder return outlook that's today's ai prism global investors
04:16this episode was produced with ai assistance based on sole economic daily reporting and reviewed by a
04:24human editor ai prism is a juan ifra award-winning series we'll be back tomorrow you've been listening
04:31to ai prism from sole economic daily
