South Korean retail investors are directing more new money into U.S. bonds as Treasury yields rise above 5% and enthusiasm for U.S. stocks cools. Net purchases of U.S. bonds totaled $3.184 billion, or about 4.3047 trillion won, across August and September, including $1.363 billion in September, according to the Korea Securities Depository on the 2nd. September bond buying exceeded net U.S. stock purchases by $362 million. Settlement value for U.S. stocks fell 49.9% from June to September, while Korean investors' U.S. bond holdings rose 16.0% over three months to $15.72 billion. The figures indicate a shift in new allocations toward bonds rather than large-scale selling of existing U.S. equities. The 10-year Treasury yield reached around 5.3% this week, while the 30-year yield exceeded 5.6%, its highest level in 24 years. Analysts cite high energy prices and corporate bond issuance linked to artificial intelligence investment as factors that could keep upward pressure on yields, with Shinhan Securities analyst Kang Jin-hyuk saying sector fundamentals may become more important if high rates do not ease quickly.