FTSE Russell has published the results of its annual country classification review for countries monitored by its global fixed income indices, reclassifying South Korean government bonds, Indian government bonds, and a price source change for US Treasuries, European government bonds and UK Gilts.
South Korea is set to be reclassified from Market Accessibility 1 to 2, and South Korean government bonds will be added to the FTSE World Government Bond Index (WGBI), starting with November 2025 index profiles and phased in over a one-year period on a quarterly basis.
Since September 2022 several initiatives intended to improve the accessibility of South Korean government bonds for international investors have been implemented by market authorities. Most recently, these efforts have facilitated connectivity with International Central Securities Depositories in June 2024 for the South Korean bond market and permitted third-party foreign exchange for South Korean won starting in July 2024.
Nikki Stefanelli, head of fixed income, currencies and commodities index policy at FTSE Russell, said, “FTSE Russell has closely monitored the capital markets reforms that have been implemented by South Korean market authorities over the past two years and their effectiveness in achieving the rigorous accessibility criteria for WGBI inclusion. We look forward to continuing to support the market as it undertakes readiness activities ahead of index inclusion at the end of next year.”
Sang-mok Choi, deputy prime minister and minister of finance of Korea, said, “Over the last two years, the South Korean government has announced a series of initiatives to strengthen its capital markets for both domestic and international investors, which have now been successfully implemented. Over this time, we have had a positive engagement with FTSE Russell and international market participants on the impact of these efforts and their ability to facilitate inclusion of South Korean government bonds in the FTSE WGBI, which requires the highest level of market accessibility.”
The Market Accessibility Level for India will be reclassified from 0 to 1, and Indian government bonds will be included in the FTSE Emerging Markets Government Bond Index (EMGBI), starting in September 2025.
FTSE Russell has also made a price source change for US Treasuries, European government bonds and UK Gilts to Tradeweb FTSE Closing Prices, effective March 2025.
The change will be effective across all FTSE global fixed income indices, including the FTSE World Government Bond Index (WGBI). Tradeweb FTSE closing bond prices are based on bid-side and offer-side price quotes supplied by market makers to Tradeweb’s electronic trading platform for institutional dealers and clients during a predetermined collection window each day.
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