Government Bond Yields Mixed... Three-Year Bonds Close at 2.409% Per Annum

"Quiet Market Amid Overlapping Vacation Season"
Focus Shifts to Next Week's U.S. Inflation Data

On August 8, government bond yields showed a mixed trend.

On the 6th, dealers were working in the dealing room of Hana Bank in Jung-gu, Seoul. On that day, the KOSPI opened at 3,182.06, down 15.94 points (0.50%) from the previous trading day, the KOSDAQ fell 0.27% to 796.48, and the won-dollar exchange rate started the session down 1.0 won at 1,387.3 won. August 6, 2025 Photo by Jo Yongjun

On this day, in the Seoul bond market, the yield on three-year government bonds closed at 2.409% per annum, up 0.1 basis points (1bp = 0.01 percentage points) from the previous trading day.

The yield on ten-year bonds rose by 0.4 basis points to 2.776% per annum. The yields on five-year and two-year bonds closed at 2.554% per annum and 2.351% per annum, respectively, with the five-year up 0.3 basis points and the two-year down 0.1 basis points. The yield on twenty-year bonds fell by 0.4 basis points to 2.792% per annum. The yields on thirty-year and fifty-year bonds each dropped by 0.2 basis points, closing at 2.697% per annum and 2.582% per annum, respectively.

Jo Yonggu, a researcher at Shin Young Securities, stated, "Today, there was a reduction in foreign investors' buying of three-year government bond futures toward the end of the session, but yields did not show a significant reaction," adding, "With no major catalysts and the overlap with the vacation season, the market was overall quiet."

Min Jihee, a researcher at Mirae Asset Securities, commented, "Attention is focused on the U.S. July Consumer Price Index (CPI), which will be released on the 12th local time." She added, "If the core CPI comes close to the market consensus of a 0.3% increase from the previous month, caution toward the August inflation data may increase, and expectations for a rate cut at the September Federal Open Market Committee (FOMC) meeting could diminish."

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