Korea Yield Curve May Steepen Amid Record Bond Supply
- Government plans to sell 201 trillion won of debt next year
- Martial law impact on yield curve to be short-lived: Shinyoung
South Korea’s yield curve may steepen, as a deluge of new debt runs up against expected policy easing by the central bank in the first half of 2025.
Bank of Korea interest rate cuts, forecast as soon as January, are likely to drive down yields on shorter-dated securities — while factors such as record gross issuance to cover the government’s revenue shortfall and high US Treasury yields are set to elevate yields on the back end, according to analysts.