South Korea's vice finance minister said the government will closely monitor a potential increase in volatility of the financial markets as the yield spread between short and long-term state bonds is increasing.

First Vice Finance Minister Kim Yong-beom made the remarks on Tuesday during a meeting of economy-related ministers in Seoul. 

Kim said that yields on government bonds with longer maturities recently jumped, widening the yield spread with bonds with shorter terms. 

The vice minister said the rise in yields of long-term bonds and the widening gap with shorter-term bonds are mainly due to a rise in U.S. Treasury yields, amid expectations for massive economic stimulus packages in the U.S. and other major economies. 
 
The vice minister then said the government will make its best efforts to ensure stability in the financial markets while monitoring economic conditions at home and abroad.