Government bond yields rise across the board, 10year 4.136%·3year 3.787%
1day, government bond yields rose across the board. As of the afternoon, 1o'clock 44minutes, 10year bonds were at 4.136%, 3year bonds were at 3.787%, with yields on all major maturities rising.
1day, government bond yields rose across the board. As of the afternoon, 1o'clock 44minutes, 30the benchmark yield on year bonds was 4.079%. At the same time, 10year bonds recorded 4.136%. The market recorded yields on major maturities moving broadly at elevated levels.
A different trend was also observed in the morning session. As of the morning, 11o'clock 1minutes, 3year bonds stood at 3.785%. At the same time, 10year bonds were at 4.114%. Short-term yields rose more, producing bear flattening, in which the yield curve flattens.
There was also volatility in the futures market. 3year Treasury futures traded at 103.30. 10year Treasury futures 106.95fell to 10. A sharp decline of more than half a big figure in the year futures was reported.
In foreign investors’ trading, 3a net long position in year Treasury futures was confirmed. Foreign investors 3net purchased year Treasury futures 5,757contracts. Market participants were cautious ahead of the government bond auction scheduled for the next trading day.
Hawkish remarks by Bank of Korea Governor Shin Hyun-song were cited as a factor pushing up interest rates. On the same day, the dollar-won exchange rate 1,520rose toward the won level, acting as a bearish factor. These messages and exchange-rate movements were reflected in the bond market.