Korean Treasury Bond Rate Surges Past 4% Amid Global Market Volatility

The 3-year Treasury bond interest rate in Korea has exceeded 4% for the first time in two years and 10 months, due to rising international oil prices caused by the war in the Middle East. This development has led to a surge in U.S. interest rates, which have been reflected in the Korean market. The 3-year Treasury bond rate closed at 4.014%, up 0.084 percentage points from the previous day.

The 10-year Treasury bond rate also rose to 4.54%, exceeding 4.5% for the first time since October 2022. Bond selling sentiment has strengthened in the domestic market, with prices falling as interest rates rise. Market anxiety is growing as the U.S. Consumer Price Index (CPI) was scheduled to be released.

The Korean won weakened against the U.S. dollar, trading at 1,345.9 won per dollar, down 6.7 won from the previous day. The won's price has recently risen sharply, reaching the 1,330 won level for the first time in more than two years.