South Korea 3-Year Bond Yield Hits 3.9% as AI Boom Sparks 7.5% Rout
Updated
Updated · The Japan Times · Jun 8
South Korea 3-Year Bond Yield Hits 3.9% as AI Boom Sparks 7.5% Rout
3 articles · Updated · The Japan Times · Jun 8
Summary
South Korea’s benchmark three-year government yield climbed to about 3.9% on Friday, its highest level since 2023, as investors dumped sovereign debt.
A surge in AI investment and semiconductor demand has revived growth, lifted prices and strengthened bets the Bank of Korea may need to raise rates.
Government bonds have lost 7.5% this year in local-currency terms—the worst performance among 44 markets tracked by Bloomberg.
The selloff contrasts with South Korea’s stock market, where AI-driven enthusiasm has pushed equities to the top of global rankings while undermining demand for safer assets.