Government Bond Yields Rise Across the Board Amid Market Boom as Rate Cut Expectations Fade

Impact of KOSPI Surpassing the 4000 Mark for the First Time

On October 27, government bond yields rose across the board as expectations for an interest rate cut by the Bank of Korea diminished following the KOSPI's entry into the 4000 range.

According to financial data provider Yonhap Infomax, in the Seoul bond market on this day, the yield on three-year government bonds closed at 2.620% per annum, up 2.9 basis points (1bp=0.01 percentage point) from the previous trading day.

The yield on 10-year bonds rose by 4.6 basis points to 2.959% per annum. The yields on five-year and two-year bonds increased by 4.0 and 1.6 basis points, closing at 2.756% and 2.556% per annum, respectively.

The yield on 20-year bonds climbed by 4.5 basis points to 2.937% per annum. The yields on 30-year and 50-year bonds rose by 4.1 and 3.7 basis points, reaching 2.850% and 2.693% per annum, respectively.

Yonhap News Agency

On this day, the Korean stock market experienced an unprecedented boom, with the KOSPI surpassing the 4000 mark for the first time and closing at 4042.83.

In particular, the semiconductor sector stood out, with Samsung Electronics' stock price exceeding 100,000 won for the first time.

As the KOSPI surged from 3000 in June to 4000 recently, the increase in market capitalization of Samsung Electronics and SK Hynix, Korea's leading semiconductor companies, accounted for more than half of the total increase in the KOSPI's market capitalization during the same period.