South Korea's 30-year government bond yield rose as high as 4.67% on Wednesday,
the highest since the bond's 2012 launch, after rising oil prices tied to Middle
East tensions and hawkish Bank of Korea commentary added pressure. A senior Bank
of Korea official said semiconductor-led strong growth is lifting potential
inflation and may require further rate hikes, weighing on ultra-long bond
demand. Demand from life insurers — a key buyer of super-long paper — has eased
after regulatory changes reduced the urgency to lengthen asset duration, cutting
their purchases of ultra-long maturities.
