Slight Decline in Government Bond Yields... 3-Year Bonds at 3.329% Annual Rate

On the 5th, the government bond market closed with interest rates falling across the board.

In the Seoul bond market that day, the yield on 3-year government bonds closed at 3.329% per annum, down 0.9 basis points (1bp = 0.01 percentage points) from the previous trading day.

The 10-year bond yield fell 2.4bp to 3.433% per annum. The 5-year and 2-year yields dropped 1.0bp and 0.9bp respectively, closing at 3.368% and 3.356% per annum.

The 20-year bond yield declined 1.7bp to 3.384% per annum. The 30-year and 50-year yields fell 1.4bp and 1.7bp respectively, recording 3.295% and 3.281% per annum.

Bond yields move inversely to prices, so a decline in yields indicates a rise in prices.

Experts expect that the employment growth in March will slow compared to February, while the unemployment rate is expected to decrease.

With major economic indicators set to be released, caution increased and yields moved within a narrow range, but influenced by a preference for safe assets, yields fell across all maturities.

On the 4th (local time), May West Texas Intermediate (WTI) crude oil prices rose significantly, surpassing $86 per barrel, while Brent crude exceeded $90 per barrel.

This is analyzed to have diluted expectations for interest rate cuts, dampening risk asset appetite such as stocks, while boosting preference for safe assets like bonds.

At the same time, hawkish remarks (favoring monetary tightening) from Federal Reserve (Fed) officials also contributed to weakening risk asset appetite.

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