Government bond yields rise across the board, 30year 4.079% and 10year 4.136%
6In 1, South Korean government bond yields rose across the board. Hawkish remarks by the Bank of Korea governor and a rise in the dollar-won exchange rate were cited as the backdrop, while the 30-year and 10-year yields stood at 4.079% and 4.136%, respectively.
1South Korean government bond yields rose across the board on . The Bank of Korea governor noted that inflation was already high. The dollar-won exchange rate rose toward the won mark, showing a weakening trend in the won. The market judged these factors to be behind the rise in yields.1,520The market judged these factors to be behind the rise in yields.
At 11:1 a.m., the benchmark 3-year government bond yield was 6.2 basis points higher than the previous trading day's average, at 3.785%. At the same time, the 10-year and 30-year yields also rose. Short-term yields rose more than long-term yields, and the yield curve was observed to flatten.
At 1:44 p.m., the benchmark 30-year government bond yield traded at 4.079%. At the same time, the 10-year yield was 4.136%. In some markets, gains widened, mainly among ultra-long-term bonds.
In the bond futures market, 3‑year government bond futures 103.30, 10‑year government bond futures 106.95 moved. Futures prices showed volatility alongside changes in spot interest rates. Foreign investor flows showed a mix of buying and selling in some issues.
Market participants also appeared to be staying on the sidelines ahead of the government bond auction scheduled for the following day. The market expects the auction results to affect the direction of short-term interest rates. The day's rise in interest rates showed differentiated movements across short- and long-term maturities.