National Treasury Bonds Hit New High... Increased Caution Ahead of FOMC

[Asia Economy Reporter Hwang Yoon-joo] On the 21st, yields on all segments of government bonds rose simultaneously, reaching new yearly highs.

On this day in the Seoul bond market, the yield on 3-year government bonds closed at 3.847% per annum, up 2.4 basis points (1bp = 0.01 percentage points) from the previous trading day. This is the highest level in about 11 years and 1 month since it recorded 3.87% on August 3, 2011.

The 10-year bond yield rose 5.5bp to 3.891% per annum. The 10-year yield also reached its highest level since April 26, 2012 (3.87%).

The 5-year and 2-year yields increased by 7.5bp and 4.8bp respectively, closing at 3.905% and 3.858% per annum.

The 20-year yield rose 3.0bp to 3.697% per annum. The 30-year and 50-year yields increased by 3.4bp and 2.5bp respectively, recording 3.660% and 3.593% per annum.

On the 21st (local time), ahead of the Federal Reserve's (Fed) September regular meeting, heightened caution led to new yearly highs across all segments.

The market largely expects the Fed to raise the benchmark interest rate by 75bp at this FOMC meeting, but some speculate a 100bp increase is also possible.

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