Government Bond Yields Close Lower... 3-Year Bond at 2.811%

Government bond yields closed lower across the board.

On the 30th in the Seoul bond market, the 3-year government bond yield ended the day at 2.811% per annum, down 1.5 basis points (1bp = 0.01 percentage points) from the previous trading day.

The 10-year yield fell 0.8bp to 2.992% per annum. The 5-year and 2-year yields dropped 0.2bp and 1.7bp respectively, closing at 2.887% and 2.813% per annum.

The 20-year yield decreased by 0.3bp to 2.904% per annum. The 30-year and 50-year yields declined by 1.3bp and 1.2bp respectively, recording 2.872% and 2.796% per annum.

With the 3-year government bond yield approaching the yearly low of 2.805% per annum recorded on the 5th of last month, market opinions are divided on the potential for further declines.

Kim Jiman, a researcher at Samsung Securities, said, "The bond market has priced in the base rate cut to a greater extent than ever before," adding, "It is unlikely that a base rate cut at the October Monetary Policy Committee meeting will further push down bond yields." He continued, "Even if the Bank of Korea lowers rates, it is unlikely that the messaging will be dovish," and explained, "As market expectations adjust, the possibility of bond yields rising is greater than the possibility of them falling."

On the day, foreign investors net bought 984 contracts of 3-year government bond futures and net sold 2,949 contracts of 10-year government bond futures.

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