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South Korean Government Bond Yields Rise Across the Board; 3-Year Note Hits 3.914%

Finance · Major Banks · yonhap_finance · 2026-09-02

South Korean government bond yields climbed across all maturities on Tuesday, with the 3-year yield rising 3.6bp to 3.914% amid broad market pressure.

What Happened

Broad Yield Increase: South Korean government bond yields saw a uniform increase across all tenors during Tuesday's trading session in Seoul. The benchmark 3-year Treasury yield rose by 3.6 basis points to reach 3.914%.

Long-Term Bond Movement: Longer-dated bonds also experienced significant upward pressure, with the 10-year yield climbing 3.7bp to 4.408%. Notably, the 20-year bond yield surged by 5.3bp, reflecting heightened sensitivity in the long end of the curve.

Short-Term and Corporate Debt: Short-term instruments, including the 2-year and 5-year notes, saw yields rise by 2.8bp and 4.4bp, respectively. Corporate bond yields also followed the trend, with the 3-year AA- rated paper increasing by 4.0bp to 4.589%.

Market Outlook: The widespread rise in yields suggests a cautious sentiment pervading the domestic fixed-income market. Data provided by Yonhap Infomax indicates that the current volatility is affecting debt instruments across the entire maturity spectrum.

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