SEOUL- South Korea’s financial regulator said on Wednesday it would maintain its market stabilizing tools, including a bond market stabilization fund of 20 trillion won ($14.19 billion), next year to be prepared for any increase in volatility.
The government and state-run financial institutions will extend a total of 37.6 trillion won worth of liquidity measures for bond and short-term money markets through 2025, the Financial Services Commission said.
The measures include a bond market stabilization fund of a maximum 20 trillion won, according to the Commission.
“Market volatility slightly heightened recently due to the so-called ‘Trump trade’,” Kim So-young, the Commission’s vice chairman, said, adding that there was a need to be prepared for higher uncertainty.
US Treasury yields have been rising sharply since October and last week hit the highest in four months on expectations that under a Donald Trump administration policies of imposing tariffs, restricting immigration and cutting taxes would reignite inflationary pressure.
