Oct 20 (Reuters) - Foreign investors sold South Korean bonds for the first time this year in September, as tensions escalated on the Korean peninsula, official data showed.
Foreign outflows of $3.3 billion from South Korean bonds in September were the biggest since February 2016.
Inflows into Indian bonds also fell during the month to an eight-month low of $219 million as concerns over a widening fiscal deficit dented sentiment.
September inflows into Indonesian bonds, however, surged to a more than 2-1/2-year high of $2.53 billion. Indonesian bonds offer the highest yield in Asia-Pacific and have not seen monthly outflows so far this year.
Malaysian and Thai bonds received inflows of $2.2 billion and $1.6 billion respectively during September.
Reporting By Gaurav Dogra and Patturaja Murugaboopathy; Editing by Gopakumar Warrier