KOSPI · October 4, 2023
The day a holiday's worth of rising yields arrived at once
-2.41%
single-day change vs previous close
Part of a longer stretch
Three months of rates staying higher
near the end of it · 2023-08-01 → 2023-10-31, -14.59% over the whole period
What happened that day?
- The KOSPI fell 2.41% on the day
- Korea's market had been shut for the Chuseok holiday and reopened that morning. Everything that happened outside arrived in a single session
- In the meantime the US 10-year Treasury yield had climbed to its highest since 2007
- When long-term yields rise, stocks priced on distant future profits are marked down first, and markets weighted toward growth feel it hardest
- What unsettled people was that no one had raised anything — **the bond market had done it on its own.** Tightening was continuing even where the Fed had paused
- The correction ended at the end of October
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.