As Government Bonds yields in major global countries have risen recently, financial stocks were strong early in the session on the 3rd.

As the government unveils plans to encourage banks to launch new pure long-term (10 years or more) fixed-rate mortgage loan products, attention focuses on whether borrowers will have more choices amid rising rates. The photo shows a banner with mortgage loan guidance hanging at a credit union in Seoul on the 1st. /Courtesy of News1

As of 9:53 a.m. that day, JB Financial Group(175330) was trading at 32,400 won, up 6.06% (1,850 won) from the previous session. Meritz Financial Group was also showing gains in the 6% range.

KB Financial Group(105560), Hana Financial Group(086790), and Woori Financial Group(316140) were all rising as well.

Recently, international oil prices have risen and inflation concerns have grown, sending Government Bonds yields in major global countries sharply higher. As financial stocks serve as defensive plays during periods of high interest rates, buying appears to have gathered.

Overnight, the U.S. 10-year Treasury yield climbed to as high as 4.821% intraday, the highest since Nov. 2023, but later fell to 4.793%. Japan's 10-year Government Bonds yield topped 3% intraday the previous day, the highest in about 30 years.

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