SEOUL-- Yield rates on South Korean state bonds jumped in May from the previous month, in line with increased key interest rates in major economies, data showed Friday.
The yield on three-year Treasurys came to 3.027 percent at the end of May, up 6.9 basis points from a month earlier, according to the data from the Korea Financial Investment Association (KOFIA).
The return on the benchmark 10-year government bonds shot up 8.4 basis points to 3.326 percent.
KOFIA said the bond yields have increased since mid-May after the U.S. Federal Reserve hinted at accelerating its policy tightening.
In late May, South Korea's central bank also hiked its key policy rate by a quarter percentage point to 1.75 percent, as it predicted inflation in 2022 could hit the highest level in 14 years amid soaring oil and commodity prices.
Bond sales in South Korea amounted to 76.3 trillion won (US$60.3 billion) in May, up 6.9 trillion won from the previous month.
The amount of outstanding bonds reached 2,573 trillion won as of end-May, up 24.3 trillion won from a month ago.
The value of bonds traded over the counter stood at 383.1 trillion won in May.
KOFIA's data showed that foreigners held 225.8 trillion won worth of South Korean bonds as of end-May.
Source: Yonhap News Agency