Korea Bond Yields Seen Gaining on Chips Boom, Analysts Say

South Korea’s bond are set to extend this year’s rout as a semiconductor boom supercharges the nation’s economic growth and adds to inflationary pressures, analysts say.

Citigroup Inc. now expects four quarter-point interest-rate increases over the next year versus two previously. iM Securities sees the three-year yield rising to 4%, the highest since November 2023, while Shinyoung Securities projects it to approach 3.8%.