S. Korean bond yields hit yearly highs for Oct.

SEOUL, Nov. 9 (Yonhap) -- South Korean bond yields rose to their highest levels
this year for October on strong hopes of an economic recovery and record trade
volume, the bourse operator said Monday.
The benchmark yield on five-year government bonds stood at 4.94 percent as of the
end of October, up 0.13 percentage point from the previous month and the highest
end-month figure for 2009 so far, according to the Korea Exchange (KRX).
The return on three-year treasuries also rose to an annual high of 4.44 percent
last month as the nation's upbeat third-quarter growth result buoyed recovery
hopes, the KRX said.
The Bank of Korea said last month that the gross domestic product grew 2.9
percent in the third quarter from the previous three months, the fastest
expansion in more than seven years.
Bond transaction volume also advanced to a record figure last month as bonds
changed hands at a faster pace amid volatile movements in yields, the bourse
operator said.
Trade volume reached 2,128 trillion won (US$1.8 trillion) in the first 10 months
of this year, posting an annual volume higher than 2,000 trillion won for the
first time, according to the KRX.
The transaction amount stood at 1,794 trillion won for the whole of 2008, it noted.
In October, the government, the central bank and other bond issuers including
companies sold a combined 49.8 trillion won of debts, down 25 percent from a
month earlier as the Bank of Korea and financial firms issued fewer bonds,
according to the KRX.
pbr@yna.co.kr
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