Yields on South Korean Treasury Bonds Rise Across the Board Ahead of Rate Decision

Yields on South Korean Treasury bonds closed higher across the board on Oct. 19.

In the Seoul bond market, the yield on three-year Treasury bonds finished at 3.877 percent per annum, up 2.3 basis points (1 bp = 0.01 percentage point) from the previous session.

The yield on 10-year bonds rose 2.3 basis points to 4.205 percent.

The yields on five-year and two-year bonds increased by 2.6 basis points and 1.8 basis points, respectively, closing at 4.014 percent and 3.836 percent.

The 20-year yield added 0.8 basis point to 4.214 percent.

The yields on 30-year and 50-year bonds gained 0.9 basis point and 1.0 basis point, respectively, recording 4.276 percent and 4.301 percent.

Treasury bond yields showed a slight downward trend until the morning of Oct. 19, but turned upward in the afternoon before closing.

Foreign investors net-purchased 7,021 three-year treasury futures contracts and 10,243 ten-year treasury futures contracts on Oct. 19.

The upward close is attributed to a cautious wait-and-see stance ahead of the Bank of Korea Monetary Policy Board's base rate decision scheduled for Oct. 22, following the downward trend in yields last week.

The three-year yield, which stood at 3.983 percent on Oct. 8, dropped to 3.854 percent by Oct. 16, while the 10-year yield fell from 4.395 percent to 4.182 percent over the same period.

(File Photo: Yonhap News)
※ Please note: This article was translated by AI and may contain errors.