South Korean Bonds Pressured by Lee’s Fiscal Spending Agenda

South Korean bonds are facing tougher times ahead, as concerns grow that the country’s left-leaning new president will usher in an era of fiscal expansion accompanied by rising government debt.

The yield on the 10-year sovereign paper jumped more than 10 basis points to 2.90% on Wednesday, after Lee Jae-myung’s election win ended months of political turmoil. It dropped about four basis points in early Thursday trading.