Government Bond Yields End Mixed Amid Hopes for U.S. Shutdown Resolution

10-Year Yield Hits 3.23% Per Annum, Marking Year’s High

On November 10, government bond yields ended mixed amid expectations that the temporary shutdown of the U.S. federal government would be lifted.

On this day, in the Seoul bond market, the yield on three-year government bonds closed at 2.865% per annum, down 2.9 basis points (1bp=0.01 percentage point) from the previous trading day.

The yield on ten-year government bonds rose by 0.4 basis points to 3.230% per annum. The yields on five-year and two-year bonds each fell by 0.8 basis points, closing at 3.035% and 2.795% per annum, respectively.

The yield on twenty-year bonds rose by 1.5 basis points to 3.228% per annum. The yields on thirty-year and fifty-year bonds increased by 0.1 basis points and 2.6 basis points, respectively, reaching 3.140% and 2.992% per annum.

On this day, the yields on ten-, twenty-, thirty-, and fifty-year bonds all hit their highest levels of the year.

Foreign investors were net sellers of 4,019 contracts of ten-year treasury bond futures, but made significant net purchases of 12,876 contracts of three-year treasury bond futures. Although the supply-demand situation was not unfavorable, analysts noted that expectations for a resolution of the U.S. government shutdown eased risk aversion, which in turn acted as a bearish factor for safe-haven assets such as bonds.

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