Treasury bond yields broadly fall on hopes of an end to the U.S.-Iran conflict, 10year 4.240%
12The day's Treasury bond yields fell across the board amid hopes that the United States and Iran would end their conflict. In the Seoul bond market, the 3year maturity fell to 3.851%10 levels, while the 4.240year maturity fell as low as %. Although the Bank of Korea governor made remarks hinting at interest rates, the bond market appeared to have already priced some of them in.
12The day's Treasury bond yields fell across the board. As hopes for an end to the conflict between the United States and Iran grew, international oil prices declined, leading the bond market to strengthen. Buying interest also flowed into the Seoul bond market.
In the Seoul bond market, the Treasury bond 3year benchmark issue traded at 5.5basis points below the previous day's indicative average, at 3.851%. Trading by institutions was observed during the session. Buying interest was confirmed, mainly in short-term issues.
The Treasury bond 10year benchmark issue stood at 7.5basis points below, at 4.240%. Long-term issues posted larger declines than short-term issues. As a result, the yield curve showed a flattening trend.
In other tallies, 3the -year bond was also reported at an annualized 3.808%. Differences arose among the tallies because of intraday volatility. Market participants traded with reference to the different tallies.
Bank of Korea Governor Shin Hyun-song, in the morning, 10in his founding anniversary address, strongly signaled a rate hike in 7May. However, along with a conservative assessment, the market viewed some of the move as already priced in. The remarks were a focus of attention during the session.
Expectations for an end to the war and falling oil prices combined to keep the domestic bond market moving in tandem with international bond markets. The day's movements reflected geopolitical volatility and oil-price trends. Investors watched geopolitical news and oil indicators going forward.