▣ Treasury bond yields declined substantially after mid-February, reflecting perceptions that the previous rise in yields had been excessive and stronger expectations of interest rate cuts by the US Federal Reserve. In March, however, yields rose sharply amid concerns about a prolonged situation in the Middle East and rising oil prices.

▣ The KOSPI sustained strong gains on expectations of improved earnings in key industries and optimism about government policies. However, the index fell sharply in March as risk-off sentiment strengthened amid instability in the Middle East.

▣ Bank lending to households declined for the third consecutive month in February (-1.1 trillion won in January 2026 → -0.3 trillion won in February). Meanwhile, bank lending to the corporate sector grew by a significantly larger extent in February than in the month before (+5.7 trillion won → +9.6 trillion won).

▣ Deposit-taking by banks shifted to a sharp increase in February (-50.8 trillion won in Janaury 2026 → +47.3 trillion won in February 2026), and funds under management at asset management companies continued to increase significantly (+91.9 trillion won → +48.6 trillion won).



※ Please refer to attached files.