The strategist said that as the effects of the South Korean government's measures to stabilize market fluctuations gradually subside and the market's expectations for further tightening monetary policy heat up, the current rise in Korean bonds may only be fleeting. Global bond yields have been high for decades. Strategists at institutions such as Gamma Asset Management and Asiana Securities expect South Korea's 3-year and 10-year treasury bond yields to rise again, retesting the four-year highs set last month. The South Korean won swap transaction pricing shows that the probability that the Bank of Korea will raise interest rates by 50 basis points over the next 6 months is about 70%, further exacerbating the market's bearish sentiment about the bond market. Affected by the Middle East war driving up oil prices and raising concerns about inflation, combined with soaring US bond yields, traders are betting that the Federal Reserve will continue to raise interest rates, and South Korean bonds will continue to be under pressure this year. Although inflation is still higher than the target level, and the booming semiconductor and memory chip industry is driving economic growth faster than expected, the South Korean government has promised to introduce measures to curb the rise in yield.

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