The Korea-U.S. bond yield spread is approaching 200 basis points, adding insult to injury for the Korean won

The yield on South Korean government bonds relative to U.S. government bonds has fallen to a historical low, putting greater pressure on the Korean won. The current 10-year government bond yield spread has widened to about 190 basis points, with analysts expecting it to exceed 200 basis points. Since mid-last year, due to economic downturns, South Korean bond yields have continued to decline, particularly accelerating after the central bank cut interest rates in November last year. The Korean won has fallen more than 7% in the past three months, becoming the worst-performing currency in Asia