Global financial market risks rose slightly over the extended Chuseok holiday, due in part to the government shutdown in the United States and financial instability in major markets.
 
Ryoo Sang-dai, senior deputy governor of the Bank of Korea, said during a market inspection meeting on Friday that although global financial markets generally remained stable during the holiday period, there were some signs of increasing uncertainty.
 
The governor listed U.S. tariff policy, the U.S. Federal Reserve’s rate-cut path and concerns about the fiscal soundness of major economies as external factors influencing market stability, vowing to continue monitoring the situation.
 
During the holiday period of October 3-9, the results of Japan's ruling Liberal Democratic Party’s presidential election, political turmoil in France and stronger earnings expectations for major tech firms amid the U.S. federal government shutdown all drove market fluctuation.

The yields on two-year and 10-year U.S. Treasurys each rose six basis points, the euro and yen weakened one-point-six percent against the U.S. dollar and American stock indices, such as the S&P 500 and Nasdaq Composite, rose on the back of tech and semiconductors stocks. 

The Korean won weakened one-point-six percent against the greenback in the nondeliverable forward market, but the nation’s credit default swap premium remained low at 24 basis points.

Ryoo said the inclusion of Korean government bonds in the World Government Bond Index this week will likely help increase market predictability and play a positive role in investor sentiment.