National Treasury Bond Yields Rise Across the Board... Investor Sentiment Weakens Amid Geopolitical Risks

Missile fallen on a village in eastern Poland (Photo by Yonhap News)

[Asia Economy Reporter Hwang Yoon-joo] On the 16th, government bond yields rose across the board. This was due to geopolitical risks arising from missile damage near the Polish border. An increase in yields means a decline in bond prices.

On that day, in the Seoul bond market, the 3-year government bond yield closed at 3.808% per annum, up 5.5 basis points (1bp = 0.01 percentage points) from the previous trading day.

The 10-year yield rose 3.5bp to 3.896% per annum. The 5-year and 2-year yields increased by 5.0bp and 5.3bp, closing at 3.866% and 3.893% per annum, respectively.

The 20-year yield rose 2.9bp to 3.898% per annum. The 30-year and 50-year yields increased by 4.3bp and 5.0bp, recording 3.886% and 3.883% per annum, respectively.

On the 15th (local time), during Russia’s large-scale missile strikes on Ukraine, a missile fell on farmland in Przewod?w, Hrubiesz?w County, Lublin Voivodeship, an eastern Polish border area adjacent to Ukraine, killing two people. It was revealed that the missile was a surface-to-air missile mistakenly fired by the Ukrainian military. However, investor sentiment did not recover.

Meanwhile, credit bond yields also rose. The 91-day commercial paper (CP) yield increased 4bp from the previous trading day to 5.26% per annum.

The 3-year Korea Electric Power Corporation (KEPCO) bond yield also rose 6.6bp to 5.476% per annum. Unsecured 3-year corporate bonds with AA- rating (5.416% per annum) and BBB- rating (11.261% per annum) increased by 7bp and 6.7bp, respectively.

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