Market watchers said bond yields, which move inversely to prices, have been on a sharp rise as investors rush to sell holdings amid greater market uncertainty.
The yield on three-year unsecured corporate bonds with a credit rating of AA- closed at 1.810 percent Friday, up 10.3 basis points from the prior session, according to the Korea Financial Investment Association.
The return on debentures with a rating of BBB- came to 7.965 percent, up 11 basis points from a day earlier. In particular, the spread between BBB- corporate bonds and the yield on three-year government bonds soared to a year high of 6.892 percentage points Friday, pointing to investors' greater risk aversion.
The association said South Korean companies are having difficulties raising funds through debt sales as the coronavirus outbreak has drastically increased market uncertainty.