Company Bond Yield Records All-time Low

The yield of company bonds (debentures) reached a single digit level for the first time in the Korean capital market, breaking an all time low level.
This means that the level of debenture yields which skyrocketed above 20% at one point this year after the IMF bail-out late last year have been normalized.
In the Korean capital market, on October 15, the yield of benchmark three year due debentures (without guarantee) fell to an annual 9.5% at one time during the day. Experts in the market are predicting that the current falling trend in the level of debenture yield will continue due to the affluent money supply of financial institutions including banks.
Moreover, the fact that the government began restricting the five biggest chaebols' debenture issuing helped the current mood of debenture yield lowering.
The yield of debentures has been briskly falling since the end of September when the basic financial restructuring was completed. When the government proclaimed that it would induce lower interest rate levels the decline has been accelerating.
Meanwhile, as interest rates fall and the yen continuse to gain against the U.S. dollar, the stock market is riding a sharp upward trend and the value of the won is stabilizing upward against the U.S. dollar.