Business · Markets · 7 hrs ago
South Korean Government Bond Yields Fell Across All Maturities in October
South Korean government bond yields fell across all maturities in October, according to data from the Korea Financial Investment Association.
Lower international oil prices and foreign investors’ purchases of government bond futures helped ease pressure on yields.
The price of US crude oil fell below $100 a barrel, and the won-dollar exchange rate stabilised.
Foreign investors switched to net buying, with purchases totalling 8.45 trillion won, up sharply from the previous month.
The Bank of Korea and the US Federal Reserve both held interest rates steady at the end of the month, while demand for safer assets also supported bonds.
Bond issuance rose to 91 trillion won, but trading volume fell to 434.6 trillion won; the data do not say what happens next.
South Korean government bond yields fell across all maturities in October.
Lower international oil prices, foreign buying of government bond futures and demand for safe assets helped support the market.
Yields rose slightly for short- and medium-term bonds early in the month, while longer-term yields faced volatility linked to overseas markets.
Foreign investors’ net bond purchases reached 8.452 trillion won, reversing from net selling in the previous month.
Total bond issuance rose from September, while over-the-counter bond trading volume declined.
- Who
- South Korean government bonds and investors in the bond market.
- What
- Government bond yields fell across all maturities in October.
- When
- October 2026.
- Where
- South Korea’s bond market.
- Why
- Lower oil prices, foreign buying of government bond futures and safe-asset demand helped ease upward pressure on yields.
This story does not have two clearly opposing sides.
Short- and medium-term yields edged up as markets tracked global rates and oil prices, while the 30-year government bond auction was well received.
Foreign investors increased purchases of government bond futures as U.S. long-term yields eased.
The Bank of Korea’s Monetary Policy Board and the U.S. Federal Open Market Committee held policy rates steady, and South Korean government bond yields fell overall.
- Government bond yields
- Fell across all maturities in October
- Total bond issuance
- 91 trillion won
- Net bond issuance
- 33.1 trillion won
- Foreign net bond purchases
- 8.452 trillion won
- Over-the-counter bond trading
- 434.6 trillion won
1 source
What people are saying
Foreigners’ incentives for arbitrage strengthened as CRS rates fell rapidly from the beginning of the month and swap basis widened.