Park’s remarks underscore the enduring appeal of US assets for long-term investors such as sovereign wealth funds, even after recent bouts of volatility have undermined their allure. Uncertainties over President Donald Trump’s trade policy and ballooning fiscal deficits have roiled the Treasury market and pushed a gauge of the dollar down more than 10% from a January high.
South Korea’s US$206.5 billion ($262.69 billion) sovereign wealth fund is standing by US Treasuries as a core holding, undeterred by recent market volatility.
“We are happy to invest in US Treasuries in a sense that the bonds give very strong liquidity and stable returns,” regardless of short-term market volatility, Park Il Young, chief executive officer of Korea Investment Corp., said in an interview with Bloomberg.
