Korea 3Y corp bond yield rises 0.5 bps to 3.73%

Korea 3Y corp bond yield rises 0.5 bps to 3.73%

South Korea’s 3-Year Corporate Bond Yield Rises to 3.73% Amid Market Volatility

South Korea’s 3-year corporate bond yield increased by 0.5 basis points to 3.73% on February 24, 2026, reflecting ongoing pressures from fiscal policy uncertainty and global market dynamics. The rise follows recent government assurances of heightened vigilance in managing bond market stability, as the 3-year yield approaches critical levels near 3.3%.

The upward trend aligns with broader discussions surrounding a potential supplementary budget, which has heightened investor caution. Analysts note that fiscal expansion efforts, combined with global interest rate fluctuations, are contributing to elevated yields. Additionally, South Korea’s exposure to U.S. Treasury yield curve movements remains the highest in Asia, amplifying external risks to domestic debt markets.

Historical data from Trading Economics indicates that the South Korean 3-year bond yield traded at 3.1050% as of December 9, 2025, with projections forecasting a decline to 2.9785% by the end of the first quarter of 2026. However, recent movements suggest a deviation from these expectations, with yields climbing 0.22% over the past four weeks and 0.58% year-to-date.

Authorities have emphasized measures to stabilize the bond market, including monitoring liquidity conditions and coordinating with financial institutions. The Bank of Korea’s policy stance and upcoming fiscal announcements will likely remain key determinants of yield trajectories in the near term. Investors are advised to remain cautious as global and domestic factors continue to intertwine, shaping South Korea’s debt landscape.

(https://en.sedaily.com/news/2026/02/13/korea-vows-bond-market-vigilance-as-3-year-yield-nears-33): Korea Vows Bond Market Vigilance as 3-Year Yield Nears 3.3% (https://pulse.mk.co.kr/news/english/11957578): Korean Treasury Bond Yield Climb on Supplementary Budget Talk (https://www.bloomberg.com/news/articles/2026-02-05/south-korea-s-debt-exposure-to-us-treasury-yield-curve-ranks-highest-in-asia): South Korea’s Debt Exposure to US Treasury Yield Curve Ranks Highest in Asia (https://tradingeconomics.com/gvsk3y:gov): South Korea 3 Year Bond Yield | Quote | Chart | Historical | Data (Trading Economics)