BOK Flags Market Volatility Amid Global Bond Yield Spike
The Bank of Korea (BOK) is closely monitoring South Korea's financial markets after global bond yields rose significantly over the Chuseok holiday. The central bank held a market review meeting to assess international market developments and their potential impact on Korea's financial and foreign exchange markets.
The BOK said expectations for a Federal Reserve rate increase strengthened during the period, while tensions in the Middle East resurfaced and oil prices fluctuated. Between September 23 and 25, U.S. two-year Treasury yields rose 10 basis points and 10-year yields climbed 20 basis points.
BOK Deputy Governor Kwon Min-soo stated that movements in major-country stock prices and the U.S. dollar were relatively limited during the holiday, but global government bond yields rose considerably on changes in monetary policy expectations, heightening uncertainty in international financial markets.