South Korea Bond Yields Seen Rising to 4% as Chip Boom Fuels Growth and Inflation
Updated
Updated · Bloomberg · May 16
South Korea Bond Yields Seen Rising to 4% as Chip Boom Fuels Growth and Inflation
3 articles · Updated · Bloomberg · May 16
South Korea’s bond selloff is expected to deepen, with analysts forecasting the three-year yield could climb to 4%, the highest since November 2023.
Citigroup now expects four quarter-point rate hikes over the next year, up from two previously, as the semiconductor boom strengthens growth and adds inflation pressure.
Other forecasters also turned more bearish on bonds: iM Securities sees the three-year yield at 4%, while Shinyoung Securities expects it to approach 3.8%.
The outlook suggests South Korea’s chip-led expansion is reshaping rate expectations and pushing borrowing costs higher across the market.
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