S. Korea's WGBI inclusion could limit further rise in bond yields: analysts | Yonhap News Agency

## Summary
OK SEOUL, April 1 (Yonhap) -- South Korea's inclusion in the World Government Bond Index (WGBI) is expected to put downward pressure on rising bond yields, but its impact on foreign capital inflows may be smaller than earlier expected, local analysts said Wednesday. South Korea began its phased eight-month inclusion into the WGBI, a leading index that measures the performance of government bonds from over 20 major economies, including the United States, Japan and China, with an estimated US$2.5 to 3 trillion of funds tracking the index. "The passive fund inflow from South Korea's inclusion into the WGBI is estimated to be around 70 trillion (US$46.4 billion) to 80 trillion won," Ahn Ye-ha, an analyst from Kiwoom Securities, said. Offshore investors net purchased 2.77 trillion won (US$1.84 billion) worth of Korean government bonds on Tuesday, one day before the country began its inclusion into the index, according to data from the Korea Exchange (KRX), South Korea's main bourse operator. Some analysts, however, argue the amount of passive fund inflow to South Korea may be smaller than expected, citing unfavorable market conditions. "The amount of capital in funds tracking the WGBI may have been reduced, with the war deteriorating investment demand for bonds, as well as the global move in capital amid the bullish stock market," Kim Ji-na, an analyst at Eugene Investment & Securities, said. fairydust@yna.co.kr (END) Related Articles S.

## Article Content
Facebook
X
More
Pinterest
Linked in
Tumblr
Reddit
Facebook Messenger
Copy URL
URL is copied.
OK
SEOUL, April 1 (Yonhap) -- South Korea's inclusion in the World Government Bond Index (WGBI) is expected to put downward pressure on rising bond yields, but its impact on foreign capital inflows may be smaller than earlier expected, local analysts said Wednesday.
South Korea began its phased eight-month inclusion into the WGBI, a leading index that measures the performance of government bonds from over 20 major economies, including the United States, Japan and China, with an estimated US$2.5 to 3 trillion of funds tracking the index.
"The passive fund inflow from South Korea's inclusion into the WGBI is estimated to be around 70 trillion (US$46.4 billion) to 80 trillion won," Ahn Ye-ha, an analyst from Kiwoom Securities, said.
Offshore investors net purchased 2.77 trillion won (US$1.84 billion) worth of Korean government bonds on Tuesday, one day before the country began its inclusion into the index, according to data from the Korea Exchange (KRX), South Korea's main bourse operator.
The amount marks the highest daily figure since Sept. 30, 2025, when foreigners net purchased 2.8 trillion won. It also accounts for nearly 30 percent of total net purchases of Korean bonds by foreigners in March, totaling 9.49 trillion won, KRX data showed.
People walk in the financial district of Yeouido, western Seoul, in this file photo taken Dec. 24, 2025. (Yonhap)
Market watchers expected bond yields would come under downward pressure once funds tracking the WGBI flow into the local market.
South Korean bond yields have been on an upward trend lately due to inflationary concerns stemming from the war between the United States and Iran. Yields on the benchmark three-year government bonds had hit the highest level in more than two years, closing at 3.63 percent on March 23. Bond prices move inversely to yields.
"The country's inclusion into the index could ease the burden on the real economy by limiting upward pressure on bond yields as the market faces inflationary concerns from high oil prices and rising market rates," Lee Yoo-jung, an analyst at Hana Bank, said.
Some analysts, however, argue the amount of passive fund inflow to South Korea may be smaller than expected, citing unfavorable market conditions.
"The amount of capital in funds tracking the WGBI may have been reduced, with the war deteriorating investment demand for bonds, as well as the global move in capital amid the bullish stock market," Kim Ji-na, an analyst at Eugene Investment & Securities, said.
fairydust@yna.co.kr
(END)
Related Articles
S. Korea joins World Government Bond Index: minister
Foreigners' net purchases of S. Korean bonds nearly double in 2025: data
(LEAD) S. Korea's inclusion in FTSE Russell's global bond index delayed to April 2026
Keywords
#WGBI
Articles with issue keywords
Most Liked
(2nd LD) Han Kang's 'We Do Not Part' wins NBCC Award for haunting portrayal of trauma
Paik Kun-woo, at 80, says 'Music chose me'
(Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot
(News Focus) Han Kang's NBCC win again spotlights art of translation
(LEAD) BTS scores 7th No. 1 album on Billboard 200 with 'Arirang'
Most Saved
(2nd LD) Han Kang's 'We Do Not Part' wins NBCC Award for haunting portrayal of trauma
(News Focus) Han Kang's NBCC win again spotlights art of translation
Paik Kun-woo, at 80, says 'Music chose me'
(Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot
Liberal ex-prime minister to declare mayoral bid in conservative stronghold
Most Viewed
All Categories
(LEAD) Trump calls on countries to 'go get your own oil' from Strait of Hormuz, or buy it from U.S.
Korean Air to enter emergency management mode over soaring fuel costs
S. Korea to remove 'China (Taiwan)' label from e-arrival system after Taiwan's protest
(LEAD) Lee urges bold measures to cope with concerns about energy situation, including emergency economic decree if needed
(News Focus) With 'Arirang,' BTS proves endurance beyond long break
Most Viewed More
Most Viewed Photos
Tass news agency's delegation in Pyongyang
Indonesian president visits S. Korea
Tass news agency's delegation in Pyongyang
Tass news agency's delegation in Pyongyang
prev
S. Korea's WGBI inclusion could limit further rise in bond yields: analysts
Next
S. Korea's WGBI inclusion could limit further rise in bond yields: analysts

---

## Expert Analysis

### Merits
N/A

### Areas for Consideration
- Korea's inclusion in FTSE Russell's global bond index delayed to April 2026 Keywords #WGBI Articles with issue keywords Most Liked (2nd LD) Han Kang's 'We Do Not Part' wins NBCC Award for haunting portrayal of trauma Paik Kun-woo, at 80, says 'Music chose me' (Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot (News Focus) Han Kang's NBCC win again spotlights art of translation (LEAD) BTS scores 7th No. 1 album on Billboard 200 with 'Arirang' Most Saved (2nd LD) Han Kang's 'We Do Not Part' wins NBCC Award for haunting portrayal of trauma (News Focus) Han Kang's NBCC win again spotlights art of translation Paik Kun-woo, at 80, says 'Music chose me' (Movie Review) 'Salmokji: Whispering Water': mood runs deeper than plot Liberal ex-prime minister to declare mayoral bid in conservative stronghold Most Viewed All Categories (LEAD) Trump calls on countries to 'go get your own oil' from Strait of Hormuz, or buy it from U.S.

### Implications
- OK SEOUL, April 1 (Yonhap) -- South Korea's inclusion in the World Government Bond Index (WGBI) is expected to put downward pressure on rising bond yields, but its impact on foreign capital inflows may be smaller than earlier expected, local analysts said Wednesday.
- Bond prices move inversely to yields. "The country's inclusion into the index could ease the burden on the real economy by limiting upward pressure on bond yields as the market faces inflationary concerns from high oil prices and rising market rates," Lee Yoo-jung, an analyst at Hana Bank, said.
- Some analysts, however, argue the amount of passive fund inflow to South Korea may be smaller than expected, citing unfavorable market conditions. "The amount of capital in funds tracking the WGBI may have been reduced, with the war deteriorating investment demand for bonds, as well as the global move in capital amid the bullish stock market," Kim Ji-na, an analyst at Eugene Investment & Securities, said. fairydust@yna.co.kr (END) Related Articles S.
- Korean bonds nearly double in 2025: data (LEAD) S.

### Expert Commentary
This article covers korea, bond, inclusion topics. Areas of concern are also raised. Readability: Flesch-Kincaid grade 0.0. Word count: 711.