The interest on state bonds with a maturity of three years has slipped to the zero percent range for the first time ever amid fears over the COVID-19 outbreak. 

The interest on such bonds fell five-point-four basis points from the previous trading day to stand at one-point-024 percent as of 9:55 a.m. Monday in Seoul’s bond market.  

The interest on such bonds had slipped to point-998 percent shortly after the market opened before recovering to the one percent range. It marked the first time ever for the interest on state bonds with a maturity of three years to slip below one percent during trading.  

During the same period, interest on state bonds with a maturity of five years slipped seven basis points to stand at one-point-112 percent.  

Both the interest on state bonds with a maturity of three years and five years currently stand at below the benchmark interest rate of one-point-25 percent. 

Market insiders blamed the drop in the interests to growing fears around the world over the surge in COVID-19 cases and to more and more people preferring safer assets.