(2nd LD) Seoul stocks fall for 3rd day as Treasury yields rise

Seoul stocks slipped for a third day on Wednesday as U.S. Treasury yields climbed, raising concerns about higher borrowing costs and dampening investor confidence. The Korea Composite Stock Price Index (KOSPI) dropped 32.77 points, or 0.48 percent, to close at 6,838.04, marking a third day of declines. Overnight, U.S. stocks ended marginally lower despite falling oil prices, due to persistent high Treasury yields keeping investors cautious.

Global bond yields have surged to multi-year peaks as worries about high energy prices sustaining inflation and prompting more interest rate hikes loom.

The yield on the 30-year U.S. Treasury bond hit 5.6 percent, the highest in 24 years, while the benchmark 10-year yield stayed above 5.2 percent, its highest since 2007. Trading volume was light at 264.24 million shares worth 18.81 trillion won ($13.89 billion), with more decliners than advancers - 511 to 351. Foreign investors and institutions sold a combined net of 2.05 trillion won, whereas local individuals bought a net 1.17 trillion won.

Industry giants Samsung Electronics and SK hynix, considered market barometers, both fell, with the former down 1.47 percent to 268,500 won and the latter increasing 0.62 percent to 1.78 million won. KB Financial Group declined 2.71 percent to 168,800 won, and Shinhan Financial Group dropped 3.98 percent to 106,100 won. The Korean won rose to 1,352.8 against the U.S. dollar, up 1.2 won from the prior trading session's close.

Bond prices, inversely related to yields, closed higher, with three-year Treasurys yields falling 6.5 basis points to 4.011 percent, and five-year government bond yields slipping 7.3 basis points to 4.203 percent.