Treasury Bond Yields Fall Across the Board Amid Sharp Drop in Exchange Rate... 3-Year at 3.096% Per Annum

Yonhap News Agency

On January 26, yields on Korean Treasury bonds fell across the board. This is analyzed as a result of the sharp drop in the won-dollar exchange rate, influenced by the strengthening of the Japanese yen.

On this day in the Seoul bond market, the yield on three-year Treasury bonds closed at 3.096% per annum, down 4.1 basis points (1bp = 0.01 percentage point) from the previous trading day. The yields on five-year and two-year bonds fell by 3.8bp and 3.3bp, respectively, closing at 3.382% and 2.877% per annum. The yield on ten-year bonds dropped 4.6bp to 3.544% per annum. Long-term bonds also saw declines, with the yield on twenty-year bonds falling 1.1bp to 3.575% per annum. The yields on thirty-year and fifty-year bonds each fell by 1.4bp, closing at 3.456% and 3.351% per annum, respectively.

The decline in Treasury bond yields on this day is being attributed to exchange rate movements. In the Seoul foreign exchange market, the won-dollar exchange rate was recorded at 1,440.6 won, down 25.2 won from the previous session based on the weekly closing price (3:30 p.m.). Earlier in the day, speculation arose that U.S. and Japanese authorities might intervene in the foreign exchange market to curb excessive yen weakness, which led to overall strengthening of the Japanese yen.

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