Financial Times FT.com

South Korean pension fund shuns low-yield US Treasuries

By Song Jung-a in Seoul, Andrew Wood in Hong Kong and,Michael MacKenzie in New York

Published: March 27 2008 02:00 | Last updated: March 27 2008 02:00

The world's fifth-largest pension fund will no longer buy US Treasuries because yields are too low. The move signals what could be a big shift by financial institutions away from US government debt into higheryielding assets.

South Korea's National Pension Service, which has $220bn in assets, said yesterday it wanted to broaden its range of overseas investments.

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