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South Korean Government Bond Yields Fall Across the Board
Finance · Major Banks · yonhap_finance · 2026-08-27
South Korean government bond yields declined across all maturities on the 27th, with the 3-year yield closing at 3.755% following a 6.1bp drop.
What Happened
Bond Yield Decline: South Korean government bond yields trended lower across the entire curve on the 27th. The benchmark 3-year Treasury bond yield fell by 6.1 basis points to close at 3.755%.
Yields by Maturity: The 10-year bond yield dropped by 5.0 basis points to 4.238%, while the 5-year and 2-year yields saw declines of 5.9 and 7.3 basis points, respectively. This broad-based decline reflects a general easing in market interest rates.
Long-term Bond Performance: Longer-dated bonds saw significant downward pressure, with the 20-year yield falling 7.4 basis points to 4.468%. The 30-year and 50-year bonds recorded even steeper declines of 8.5 and 8.4 basis points, respectively.
Market Context: Corporate bond yields (AA- 3-year) also retreated by 5.2 basis points to 4.448%. In contrast, the 91-day CD rate rose by 15.0 basis points, showing a divergent trend compared to the government bond market.