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South Korean Government Bond Yields Fall on Lower Oil Prices and US Yields
Finance · Major Banks · yonhap_finance · 2026-08-25
South Korean government bond yields declined across the board as lower international oil prices and falling US Treasury yields offset domestic policy caution.
What Happened
Market Movement: South Korean government bond yields trended downward on the 25th. The 3-year Treasury bond yield closed at 3.830%, down 0.6bp, while the 10-year yield fell 1.5bp to 4.320%.
Key Drivers: Despite market caution ahead of the Bank of Korea's upcoming monetary policy meeting on the 27th, the decline in US long-term Treasury yields and falling international oil prices provided a boost to the local bond market.
Investor Activity: Foreign investors net sold 2,470 contracts of 3-year Treasury bond futures and 2,608 contracts of 10-year futures. Overall trading volume remained light as investors adopted a wait-and-see approach ahead of the central bank's decision.
Market Sentiment: Analysts noted that the market is balancing anticipation and caution regarding the upcoming policy meeting. The late-day shift toward strength was largely attributed to external factors, specifically the downward movement in global oil prices and US benchmark yields.