South Korea's central bank has released its data on the financial market trends for July.
It shows.... the ongoing trade war between the world's two superpowers affected the local markets again.
Kim Hyesung has the details.
The Bank of Korea says the country's three-year treasury yields moved lower on heightened external uncertainties stemming from the escalating U.S.-China trade spat.
Yields fell zero-point-zero-eight percent from two-point-two percent between end of May to the end of June...remained at two-point-one percent through the end of July...then fell slightly to two-point-zero-seven percent as of Wednesday.
The central bank attributed the smaller fall in three-year treasury bond yields to expectations of a possible rate hike in July, which would've lifted the bond yield.
The Bank of Korea, however, stood pat on its key rate...leaving it at one-point-five percent.
The ten-year bond yield remains unchanged from end of June....at two-point-five-six percent as of Wednesday.
Bank lending to Korean households saw a slower pace of growth in July than the previous month on fewer housing transactions.
Lending to the corporate sector jumped by nearly five-point-two billion U.S. dollars in July on increased demand for loans from small and mid-sized companies who needed to pay their value added tax bills.
As a whole, deposit-taking by banks decreased in July to a negative seven-point-seven billion dollars as firms withdrew funds to pay their first-half value added tax by the July deadline.
Kim Hyesung, Arirang News.
