Lee Hyung-il, nominee for Deputy Prime Minister and Minister of Economy and Finance, stated, "Regarding government bond yields, if necessary, we will ensure stable management to prevent excessive expansion of volatility through measures such as market safety mechanisms."
The nominee further explained at the confirmation hearing for a State Council member candidate held by the Budget and National Audit Committee of the National Assembly on the 15th, in response to a question from Democratic Party of Korea lawmaker Kim Young-hwan: "Given that global government bond yields continue to rise, I believe enhanced monitoring is necessary."
According to CNBC, U.S. 10-year Treasury yields surged to 5.012% during morning trading on the day. This marks the highest level since October 2023. If yields exceed 5.02%, they will reach their highest point since July 2007, just before the global financial crisis of 2008–2009.
The nominee added, "There are indeed various concerns from the demand side, so we will do our best to manage the market in coordination with relevant institutional investors."
Regarding corporate bonds, he explained: "While spreads in the corporate bond market have widened, some aspects related to yields have already been priced in. The impact on corporate financing remains limited for now, but we will continue to monitor this closely."
in ECONOMY
