M&G Investments has increased holdings of Korean government bonds, saying markets have priced in excessive Bank of Korea tightening. Low Guan Yi, head of Asian fixed income at M&G, said easing inflation and a surge in AI-driven revenue for Korean chipmakers and hardware suppliers should enable the government to cut borrowing and reduce future bond supply. We believe the Korean yield curve is pricing in too much tightening, she said, adding M&G has added Korea bonds over the past two months. The

M&G Investments has increased holdings of Korean government bonds, saying markets have priced in excessive Bank of Korea tightening. Low Guan Yi, head of Asian fixed income at M&G, said easing inflation and a surge in AI-driven revenue for Korean chipmakers and hardware suppliers should enable the government to cut borrowing and reduce future bond supply. We believe the Korean yield curve is pricing in too much tightening, she said, adding M&G has added Korea bonds over the past two months. The view mirrors a growing cohort of Korea observers who expect geopolitical factors and sustained AI momentum to help ease near-term bond-market pressure, even as foreign investors net sold about $1.2bn in July and the 10-year yield has risen roughly 22bp since end-June.