Stocks rally on tariff deal optimism even as bond markets flash caution and household borrowing slows

South Korean government bond yields rose sharply in late September as financial stability risks increased and foreign investors turned net sellers of treasury futures, the Bank of Korea (BOK) said Thursday. Three-year government bond yields climbed to 2.58% at the end of September from 2.43% in August, while 10-year yields reached 2.95% from 2.82%. Short-term rates remained largely steady, with Money Market Fund — short-term investment vehicles for corporate cash management — demand subdued.

Meanwhile, the KOSPI hit a record 3,748.37 points on Thursday, driven by strong semiconductor performance and optimism over a possible trade deal with the U.S. following upbeat remarks from U.S. Treasury Secretary Scott Bessent. Bessent said on Thursday that he expects the U.S. and South Korea to conclude their tariff negotiations “within the next 10 days.” Institutional and foreign investors were net buyers, offsetting retail profit-taking, the central bank and local exchange data showed.

South Korean government bond yields rose sharply in late September as financial stability risks increased and foreign investors turned net sellers of treasury futures, the Bank of Korea (BOK) said Thursday. Three-year government bond yields climbed to 2.58% at the end of September from 2.43% in August, while 10-year yields reached 2.95% from 2.82%. Short-term rates remained largely steady, with Money Market Fund — short-term investment vehicles for corporate cash management — demand subdued.

Meanwhile, the KOSPI hit a record 3,748.37 points on Thursday, driven by strong semiconductor performance and optimism over a possible trade deal with the U.S. following upbeat remarks from U.S. Treasury Secretary Scott Bessent. Bessent said on Thursday that he expects the U.S. and South Korea to conclude their tariff negotiations “within the next 10 days.” Institutional and foreign investors were net buyers, offsetting retail profit-taking, the central bank and local exchange data showed.

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