Seoul: South Korea's government bond yields have surged to their highest level this year as rate cut hopes dwindled, data showed Tuesday, prompting investors to initiate a massive sell-off of bonds to reduce risks.

According to Yonhap News Agency, the yield on three-year Treasurys came to 2.894 percent Friday, rising to the highest level for this year. The figure is more than 30 basis points higher compared with 2.507 percent recorded at the start of this year.

The return on 10-year government bonds also rose to a yearly high recently, reaching 3.23 percent Monday, up 48 basis points over the cited period. Bond prices move inversely to yields.