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‘US Fed Tightening - International Oil Prices Rise’ Significant Rise in Treasury Yields

NSP NEWS AGENCY, By Soon-ki Lee and Soo-in Kang, 2023-10-13 09:50 ENX7
#Treasury Yields Rise #BOK

(Seoul=NSP NEWS AGENCY) = Treasury yields rose sharply on expectations of a prolonged tightening by the US Federal Reserve(Fed) and renewed inflation fears amid rising oil prices. Additionally, corporate lending has expanded significantly.

According to the 'Financial Market Trends for September 2023' released by the Bank of Korea on the 12th, the three-year bond rate was 3.95% as of the previous day, up 0.24 percentage points from the end of August. The 10-year Treasury bond rate was 4.14%, up 0.32 percentage points from the end of August.

In September, bank household loans(including policy mortgage loans) narrowed considerably as the growth in mortgage loans slowed and the decline in other loans widened. Mortgage loans decreased from 7.0 trillion won to 6.1 trillion won due to fewer business days and tighter lending conditions for financial institutions


On the other hand, bank corporate loans expanded significantly. Corporate loans increased from 8.2 trillion won in August to 11.3 trillion won in September.

Loans to large corporations expanded from 2.9 trillion won to 4.9 trillion won, especially in the manufacturing industry, as corporate demand for funds continued. SME loans expanded from 5.2 trillion won to 6.4 trillion won, mainly to small and medium-sized enterprises, due to banks’ efforts to expand lending, demand for corporate Chuseok funds, and deferred loan repayments due to the end-of-month holiday.

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