Government Bond Yields Rise Across the Board... 3-Year Bond at 3.496% Per Annum

The government bond yields rose for the second consecutive day as the real gross domestic product (GDP) growth rate for the first quarter exceeded expectations.

On April 24 in the Seoul bond market, the yield on three-year government bonds closed at 3.496% per annum, up 3.8 basis points (1bp = 0.01 percentage point) from the previous trading day.

Bank of Korea headquarters. The Asia Business Daily DB

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The yield on 10-year government bonds rose by 2.6 basis points to 3.817% per annum. The yields on five-year and two-year bonds increased by 3.1 basis points and 4.8 basis points, respectively, closing at 3.683% and 3.387% per annum.

The 20-year bond yield rose by 3.0 basis points to 3.755% per annum. The 30-year and 50-year bonds increased by 2.7 basis points and 2.6 basis points to close at 3.674% and 3.540% per annum, respectively.

This rise is attributed to the renewed debate over rate hikes, following the recently announced GDP growth rate surpassing previous forecasts. The Bank of Korea announced the previous day that the real GDP growth rate for the first quarter was 1.7%. This figure is nearly double the Bank of Korea’s February projection for the first quarter (0.9%).

Meanwhile, on the same day, foreign investors recorded a net selling of 13,981 contracts of three-year government bond futures and 1,162 contracts of 10-year government bond futures. This marked the third consecutive trading day of net selling since April 22.

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