Treasury Bond Yields Rise Across the Board Amid Oil Price Surge; 3-Year Yield Hits 3.895%

Treasury bond yields rose across the board today (July 20) as international oil prices surged due to escalating tensions between the United States and Iran.

In the Seoul bond market today, the yield on the 3-year Treasury bond closed at 3.895% per annum, up 4.7 basis points (1bp=0.01% percentage point) from the previous trading day.

This marks the highest level in about a month, since it reached 3.904% on June 11.

The 10-year bond yield rose 3.9bp from the previous trading day to close at 4.336% per annum, the highest level since June 8 (4.348%).

The 5-year and 2-year bond yields rose 5.5bp and 3.6bp, respectively, closing at 4.154% and 3.729% per annum.

The 20-year bond yield rose 5.9bp to 4.512% per annum.

The 30-year and 50-year bond yields rose 5.2bp and 4.6bp, respectively, to record 4.520% and 4.416% per annum.

Foreign investors net bought 14,217 contracts of 3-year Treasury bond futures and net sold 264 contracts of 10-year Treasury bond futures.

The collapse of the ceasefire agreement between the U.S. and Iran and the sharp rise in international oil prices influenced the increase in Treasury bond yields.

Overnight, the price of Brent crude oil futures for September delivery surpassed 90 dollars per barrel for the first time since June 11.

As of 3:42 p.m. today, Brent crude spot prices were trading at 90.96 dollars per barrel in over-the-counter trading, up 3.24% from the previous session.

Additionally, the re-emergence of the hawkish stance from the Bank of Korea's Monetary Policy Board last week also acted as a factor for market weakness.

Ahn Ye-ha, a researcher at Kiwoom Securities, stated, "It appears that Treasury bond yields have risen due to the continued climb in oil prices and concerns that the Monetary Policy Board may continue to raise interest rates in August."
※ Please note: This article was translated by AI and may contain errors.