South Korean bond yields rise in August following Bank of Korea's back-to-back rate hikes
Quick Look
Yield rates on South Korean state bonds increased in August, with three-year Treasurys rising 8 basis points to 3.838% and 10-year government bonds gaining 5.2 basis points to 4.313%, following the Bank of Korea's second consecutive quarter-point rate hike to 3% aimed at curbing inflation.
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Why It Matters
The Bank of Korea raised its key interest rate by a quarter percentage point to 3 percent last month, marking a second consecutive hike aimed at taming inflation.
SEOUL, Sept. 10 (Yonhap) -- Yield rates on South Korean state bonds increased in August from the previous month, as the Bank of Korea (BOK) delivered a back-to-back rate hike, market data showed Thursday.
The yield on three-year Treasurys came to 3.838 percent as of the end of August, up 8 basis points from a month earlier, according to the data from the Korea Financial Investment Association.
The return on the benchmark 10-year government bonds also gained 5.2 basis points to 4.313 percent over the cited period.
Last month, the BOK increased its key interest rate by a quarter percentage point to 3 percent, marking a second consecutive hike aimed at taming inflation.
Open Questions
- How long will the Bank of Korea maintain its current tightening cycle?
- What is the projected impact of higher rates on South Korea's economic growth?
- Are further rate hikes expected in the coming months?
