Government Bond Yields Rise Amid US Inflation Concerns

3-Year Bond Annual Yield 3.452%... Up 1.2bp from Previous Day

[Image source=Yonhap News]

Government bond yields closed higher across the board due to concerns over inflation in the United States.

On the 13th in the Seoul bond market, the 3-year government bond yield closed at 3.452% per annum, up 1.2 basis points (1bp = 0.01 percentage points) from the previous trading day.

The 10-year yield rose 1.6bp to 3.554% per annum. The 5-year and 2-year yields increased by 1.5bp and 1.1bp, closing at 3.493% and 3.482% per annum, respectively. The 20-year yield rose 1.2bp to 3.486% per annum. The 30-year and 50-year yields each increased by 1.1bp, recording 3.404% and 3.381% per annum, respectively.

The U.S. one-year short-term expected inflation, announced at the end of last week (the 10th), rose to 3.5% from 3.2% the previous month, weakening expectations for interest rate cuts.

Market participants also adopted a wait-and-see stance ahead of the U.S. April Producer Price Index (PPI) and Consumer Price Index (CPI) releases scheduled for the 14th and 15th.

Meanwhile, due to a lack of new factors, it is expected that the market trend is unlikely to change significantly in the near term.

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