Surging long-term government bond yields worldwide are adding to upward pressure on South Korean market interest rates as inflation concerns, higher oil prices and major economies’ fiscal conditions unsettle bond markets. Three-year Korean treasury yields reached 3.93% on the morning of the 2nd, up 0.052 percentage point from the previous day, while 10-year yields traded around 4.41%. The U.S. 10-year yield was around 4.8%, its highest since January last year, and the 30-year yield reached 5.27%, its highest since June 2007. Japan’s 10-year yield exceeded 3% for the first time in 30 years, while Britain’s 30-year yield reached 5.91% and Germany’s 10-year yield climbed to 3.33%. Analysts describe the moves as an external shock that can raise Korean treasury yields and lending rates. With the Bank of Korea seen as likely to raise its policy rate one or two more times over housing-price and inflation concerns, mortgage rates already above 7% could reach 8% quickly. Household debt stood at 2,019.8 trillion won at the end of June. Kim Jung-sik, professor emeritus of economics at Yonsei University, said rising long-term yields driven by inflation concerns and increased government bond issuance could affect asset prices and increase households’ interest burden.