S. Korea's bond trading hits all-time high in November

SEOUL, Dec. 7 (Yonhap) -- The trading volume of South Korean bonds rose to a
record high in November as the central bank's easing monetary policy and
risk-averse sentiment stemming from the Dubai debt crisis lifted bond purchases,
the bourse operator said Monday.

The volume of bond transactions reached 253.34 trillion won (US$204.6 billion)
last month, the highest monthly figure on record, according to the Korea Exchange
(KRX).
"An expected delay in an interest rate hike triggered a fund inflow while a
preference for safe-heaven assets due to the Dubai debt crisis added to the
active transactions," the KRX said in a statement.
The Bank of Korea kept its interest rate at a record low of 2 percent in
November, holding it steady for the ninth consecutive month to bolster a
still-nascent economic recovery.
With investors betting that a rate hike will be delayed until the first half of
next year, yields on benchmark government bonds dropped to the lowest level in
four months, the bourse operator said.
The yield on benchmark five-year treasuries stood at 4.61 percent as of the end
of November, down 0.33 percentage point from a month earlier, while the return on
benchmark three-year government bonds reached 4.1 percent, down 0.34 percentage
point from October, according to the KRX.
The local government, the central bank and private companies sold a total of
68.05 trillion won in bonds last month, 36.5 percent more than a month earlier,
the KRX noted.
pbr@yna.co.kr
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