3-Year Korean Treasury Bond Yield at 2.505%... Highest Point in Four Days

10-Year Bond at 2.871% Annual Yield, Highest Since September 2014

[Image source=Yonhap News]

[Asia Economy Reporter Seo So-jeong] The 3-year government bond yield has hit a new high for four consecutive trading days.

On the 25th, in the Seoul bond market, the 3-year government bond yield closed at 2.505% per annum, up 5.0 basis points (1bp = 0.01 percentage points) from the previous trading day, reaching the highest level since September 5, 2014 (2.508% per annum).

The 10-year yield rose 1.5bp to 2.871% per annum, marking the highest level since September 29, 2014 (2.914% per annum).

The 5-year and 2-year yields increased by 5.2bp and 4.1bp respectively, closing at 2.713% and 2.219% per annum.

The 20-year yield rose 3.2bp to 2.866% per annum. The 30-year and 50-year yields each increased by 2.8bp, recording 2.769% and 2.747% per annum respectively.

Overnight, U.S. Treasury yields rose due to strong economic indicators and hawkish remarks from Federal Reserve (Fed) officials, leading to a simultaneous rise in domestic government bond yields.

Investor sentiment toward bonds has been deteriorating day by day due to concerns over the Fed's possibility of a 'big step' rate hike of 0.5 percentage points at once, and supply-demand worries stemming from the domestic supplementary budget (Chugyeong) formulation.

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