Treasury bond yields fall on hopes of an end to the U.S.-Iran conflict 10-year yield 4.240drops to %
12Daily Treasury bond yields fell across the board amid hopes of an end to the conflict between the United States and Iran and declining oil prices. In the Seoul market, the 10-year benchmark was traded at 4.240%, while the 3-year benchmark was traded at 3.851%.
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12Daily Treasury bond yields fell across the board amid hopes of an end to the conflict between the United States and Iran and declining international oil prices. Strong buying demand flowed into both short- and long-term bonds in the bond market that day. Buying continued without a contraction in investor sentiment toward bonds. Market trading also showed signs of easing volatility.
Based on the Seoul bond market, at 10:58 in the morning, the Treasury bond 3-year benchmark yield was traded at 3.851%. At the same time, the Treasury bond 10-year benchmark yield was 4.240%. As yields on both maturities fell, demand appeared to be concentrated. Market participants increased their buying share in both short- and long-term bonds.
Another tally for the same day also recorded an annual 3-year yield of 3.808%. Although the various tallies differed by timing, they generally shared a downward trend in yields. Declining international oil prices were cited as a factor boosting demand for bonds. Signals of geopolitical easing were reflected across financial markets.
Bank of Korea Governor Shin Hyun-song said this morning 10in his founding anniversary address that he strongly signaled a benchmark interest rate hike. 7However, the market assessed that this policy signal had already been largely priced in. As it had been priced in beforehand, the additional impact of the remarks on the bond market was limited. The timing of the governor’s remarks partly overlapped with movements in bond prices.
With this interest-rate trend, the government bond yield curve showed signs of flattening. A narrowing spread between short- and long-term interest rates was confirmed. Investors moved to adjust their positions in response to changes in bond prices. It was also observed that interest rates could experience further volatility depending on geopolitical factors and policy remarks.