South Korea's Finance Minister Lee Hyung-il said that if bond yields rise excessively, South Korea will immediately implement market stabilization measures, including an urgent repurchase of treasury bonds. He said at the cabinet meeting that South Korea's domestic bond yields continued to rise due to higher global interest rates. Prior to this statement, South Korea's 3-year treasury bond yield rose to a nearly four-year high on Monday. The yield fell 5 basis points to 4.07% on Tuesday. The 10-year Treasury yield fell 8 basis points to 4.47% after rising about 15 basis points on the previous trading day. Affected by the Middle East war driving up oil prices, as an energy importer, South Korea's inflation concerns are heating up, and treasury bonds are under pressure for most of the year. Meanwhile, the yield on US Treasury bonds, the global treasury bond weather vane, soared to a multi-year high. Traders are betting that the Federal Reserve may raise interest rates again after completing its first rate hike since 2023 this month.

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