Government Bond Yields Fall Across the Board... 3-Year Bond at 2.981% Annual Interest Rate

Published 19 Apr.2022 20:04(KST)

[Asia Economy Reporter Tae-min Ryu] Government bond yields fell across the board on the 19th.

On that day, in the Seoul bond market, the yield on 3-year government bonds closed at 2.981% per annum, down 0.9 basis points (1bp = 0.01 percentage points) from the previous trading day. This marked a decline for the first time in three trading days since the 14th.

The 10-year bond yield fell 0.5bp to 3.350% per annum. The 5-year and 2-year yields dropped 1.5bp and 2.0bp respectively, closing at 3.212% and 2.782% per annum. The 20-year yield decreased by 3.7bp to 3.312% per annum. The 30-year and 50-year yields fell 3.6bp and 3.9bp respectively, recording 3.221% and 3.210% per annum.

The decline in the government bond market on this day is interpreted as being influenced by remarks from Lee Chang-yong, the nominee for Governor of the Bank of Korea. He mentioned the possibility of further rate hikes, citing rate increases due to inflation concerns, but also stated plans to ease the pace of increases and moderate the trend. At the hearing, Governor nominee Lee said, "While paying attention to not damaging growth momentum, I will adjust the degree of monetary policy easing at an appropriate pace to achieve price stability."