National Bond Yields Surge Consecutively... 3-Year Bond at 4.199% Annual Rate

[Asia Economy Reporter Kang Nahum] = On the 23rd, government bond yields surged as major central banks, including the U.S. Federal Reserve (Fed), embarked on aggressive tightening measures.

In the Seoul bond market that day, the 3-year government bond yield closed at an annual rate of 4.199%, up 9.5 basis points (1bp = 0.01 percentage points) from the previous trading day.

The government bond yield, which rose 25.7bp the previous day, continued its sharp increase, marking the highest level in 12 years and 7 months since February 22, 2010, when it recorded 4.20% annually.

The 10-year yield jumped 11.5bp to 4.112% annually, surpassing the 4% mark. This is the highest level since August 4, 2011 (4.12% annually).

The 5-year and 2-year yields closed at 4.193% and 4.180% annually, rising 7.9bp and 11.0bp respectively.

The 20-year yield increased 13.5bp to 3.930% annually. The 30-year and 50-year yields rose 10.9bp and 11.6bp to 3.844% and 3.785% annually, respectively.

Yields hit new annual highs across all maturities. In particular, most maturities, including the 3-year and 10-year, set new annual highs for four consecutive trading days.

However, as the Ministry of Economy and Finance intervened verbally during the trading session, yields gave up some of their gains. In the morning, the 3-year and 10-year yields surged to the 4.2% range, and the 5-year yield reached the 4.3% range.

The Ministry stated, "We are closely monitoring the bond market situation and will implement market stabilization measures if necessary."

Meanwhile, amid the global tightening trend and the continued sharp rise in U.S. bond yields the previous day, the Bank of Korea is increasingly expected to raise the base interest rate by 50bp at the regular Monetary Policy Committee meeting next month.

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