Seoul: Stocks end flat, bond yields surge on Fed rate hike bets

[SEOUL] South Korean shares ended nearly flat on Monday (Mar 28), while the nation's 10-year bond yields jumped to a near 8-year high on concerns that the US Federal Reserve would aggressively tighten its policy to combat surging inflation.

South Korea's benchmark 10-year treasury bond yield rose as high as 3.086 per cent, the highest since September 2014.

The benchmark Kospi fell 0.42 point or 0.02 per cent to 2,729.56.

Among the heavyweights, technology giant Samsung Electronics dipped 0.14 per cent, while LG Chem and Naver slipped around 0.5 per cent each.

Foreigners were net sellers of 273.3 billion won (S$302.9 million) worth of shares on the main board.

The won was quoted at 1,227.3 per dollar on the onshore settlement platform, 0.69 per cent lower than its previous close of 1,218.8.

In offshore trading, the won was quoted at 1,227.1 per dollar, down 0.2 per cent from the previous day, while in non-deliverable forward trading its 1-month contract was quoted at 1,227.6.

The Kospi has fallen 8.33 per cent this year, but has lost 1.4 per cent in the previous 30 trading sessions.

The trading volume during the session in the Kospi index was 755.31 million shares. Of the total traded issues of 928, the number of advancing shares was 422.

The won has lost 3.1 per cent against the dollar this year.

In money and debt markets, June futures on 3-year treasury bonds fell 0.76 point to 105.89.

The most liquid 3-year Korean treasury bond yield rose by 27 basis points to 2.773 per cent, while the benchmark 10-year yield rose by 20.2 basis points to 3.070 per cent. REUTERS