# Global Market: Foreign investors sell Asian bonds in August as global debt rout weighs — retained record

> Retained news record from news:india-et-markets.

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source: [news](https://highsignal.app/data/news) (news:india-et-markets)  published 2026-09-18 10:19 ingested 2026-09-19 02:58

[original source ↗](https://economictimes.indiatimes.com/markets/us-stocks/wall-street-guide/global-market-foreign-investors-sell-asian-bonds-in-august-as-global-debt-rout-weighs/articleshow/134332245.cms)

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Foreign investors recorded net sales of $457 million across bonds in South Korea, Malaysia, India, Indonesia and Thailand, according to data from regulators and bond market associations cited by Reuters. The outflows marked the first monthly net selling since March.
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Global bond markets came under pressure during August, with rising government debt and persistent inflation concerns pushing long-term borrowing costs higher. Investors also reassessed the outlook for interest rates as major central banks signalled that monetary policy could remain restrictive for longer.
Expectations of prolonged monetary tightening, coupled with concerns over increased government bond issuance in some developed markets, encouraged investors to reduce exposure to emerging-market debt.
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South Korea recorded the largest outflow among the five markets, with foreign investors selling about $5.4 billion of bonds following four consecutive months of purchases. Reuters reported that the selling may have partly reflected the unwinding of positions built ahead of South Korea's inclusion in the FTSE World Government Bond Index, which had supported sustained inflows earlier in the year.
Thailand recorded a third consecutive month of foreign outflows, with investors selling a net $77 million of bonds. India also saw foreign investors sell $232 million of bonds after two straight months of net purchases.
The selling was partly offset by strong inflows into Malaysia and Indonesia. Foreign investors bought $3.95 billion of Malaysian bonds and $1.3 billion of Indonesian debt during the month.
The divergent flows indicated that investors remained selective within Asian debt markets, with capital continuing to move towards markets offering relatively attractive yields and stable domestic fundamentals.
The broader environment has remained challenging for emerging-market bonds as global yields rise and central banks continue to focus on inflation risks. In India, for example, the Reserve Bank has recently stepped up liquidity-absorption measures, including government bond sales, amid elevated surplus liquidity in the banking system.
More recently, global bond markets have remained sensitive to inflation and energy-price risks. Reuters reported on Friday that the U.S. 10-year Treasury yield had moved above 5% during the week's selloff, while investors continued to assess the implications of higher oil prices and tighter monetary policy.
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