Due to Expectations of Interest Rate Cuts... 3-Year Korean Treasury Bond Yield Falls Below 3%
![Jerome Powell, Chair of the U.S. Federal Reserve (Fed) <br>[Photo by Yonhap News]](http://www.asiae.co.kr/news/img_view.htm?img=2024052516002384225_1716620423.jpg)
As expectations for a base interest rate cut grow, government bond yields have fallen across the board.
On the 29th in the Seoul bond market, the 3-year government bond yield closed at 2.978% per annum, down 4.6 basis points (1bp=0.01 percentage points) from the previous trading day.
The 10-year yield fell 6.2bp to 3.046% per annum. The 5-year and 2-year yields dropped 5.5bp and 4.3bp respectively, closing at 2.990% and 3.057% per annum.
Government bond yields have been continuously declining amid growing expectations of a US base interest rate cut. The market anticipates that the US Federal Reserve (Fed) will lower the base rate in September.
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According to the FedWatch indicator by the Chicago Mercantile Exchange (CME) Group, the futures market currently reflects a 100% probability of a rate cut in September.
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