According to CoinMeta, M&G Investment has increased its holdings of South Korean government bonds, believing that the market's pricing of interest rate hikes is excessive. The head of the company's Asian fixed-income business, Low Guan Yi, stated that as inflationary pressures ease, the South Korean central bank may slow down the pace of interest rate increases, and South Korean government bonds are expected to strengthen. She pointed out that the artificial intelligence boom has led to a significant increase in taxes for South Korean chip manufacturers and hardware suppliers, which will enable the government to reduce its borrowing scale. Low also mentioned that the company has increased its holdings of South Korean government bonds even more in the past two months, and considering the unexpected income the government has currently received, the supply of South Korean government bonds is expected to decrease in the future. Despite recent capital outflows, the market generally expects the South Korean central bank to continue raising interest rates, but she believes that geopolitical factors and the ongoing enthusiasm for artificial intelligence will ease pressure on the bond market in the coming weeks. South Korean government bonds have faced pressure in recent weeks, with foreign funds selling net about $1.2 billion in July, the highest level since February 2025. Since the end of June, the yield on 10-year bonds has risen by 22 basis points.