The spread of South Korea's foreign exchange bonds has increased by 3-4 basis points due to the recent Iran crisis and military actions by the U.S. and Israel, although this rise is smaller compared to similar increases in China and Japan.
The recent military actions in Iran by the United States and Israel have led to an increase of 3-4 basis points in the spread of South Korea's foreign exchange bonds, reflecting a slight deterioration in the country's external creditworthiness. The international finance center noted that the foreign exchange bond spread compared to U.S. Treasury yields has risen, indicating a cautious reaction within the market to ongoing Middle Eastern tensions. Kim Yoon-kyung, a bond analyst at the National Debt Management Center, explained that while U.S. Treasury yields surged by over 10 basis points following the Iran attacks, South Korea's increase was not as pronounced as those observed in China and Japan, which saw rises of 7bps and 5bps, respectively.
