Korea's WGBI inclusion could limit further rise in bond yields: analysts

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. 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 $2.5 to 3 trillion of funds tracking the index. "The passive fund inflow from Korea's inclusion into the WGBI is estimated to be around 70 trillion ($46.4 billion) to 80 trillion won," Ahn Ye-ha, an analyst from Kiwoom Securities, said. Offshore investors net purchased 2.77 trillion won ($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), 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 ne

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