Government and Corporate Bonds Close Lower... CP Interest Rates Ease Sharp Rise

[Asia Economy Reporter Hwang Yoon-joo] Yields on government bonds and corporate bonds declined.

On the 8th, in the Seoul bond market, the yield on 3-year government bonds closed at 1.024% per annum, down 2.3 basis points (1bp=0.01 percentage points) from the previous trading day.

The 10-year bond yield fell 6.9bp to 1.511% per annum. The 5-year yield dropped 5.4bp, and the 1-year yield decreased 2.0bp, closing at 1.264% and 0.891% per annum, respectively. The 20-year yield declined 6.3bp to 1.598% per annum. The 30-year and 50-year yields fell 6.2bp and 6.3bp, respectively, recording 1.608% and 1.607% per annum.

The yield on 3-year AA- rated unsecured corporate bonds also decreased by 0.3bp to 2.097% per annum.

However, the yield spread between the 3-year government bond and corporate bonds was 107.3bp, the highest since December 7, 2010 (112.0bp).

Commercial paper (CP) yields, which had been rising sharply for a while, are gradually stabilizing due to government market stabilization measures such as the Bond Market Stabilization Fund (Cha-an Fund). On this day, the 91-day CP yield closed at 2.18% per annum, the same as the previous day.

Previously, CP yields rose for 12 consecutive trading days until the 2nd, then declined or remained flat from the 3rd. The spread between the 91-day CP yield and the 91-day negotiable certificate of deposit (CD) yield (1.10%) was also 108bp, unchanged from the previous trading day.

This content was produced with the assistance of AI translation services.