Government Bond Yields Rise Amid US Inflation Concerns

3-Year Bond Annual Yield 3.452%... Up 1.2bp from Previous Day

[Image source=Yonhap News]

Government bond yields closed higher across the board due to concerns over inflation in the United States.

On the 13th in the Seoul bond market, the 3-year government bond yield closed at 3.452% per annum, up 1.2 basis points (1bp = 0.01 percentage points) from the previous trading day.

The 10-year yield rose 1.6bp to 3.554% per annum. The 5-year and 2-year yields increased by 1.5bp and 1.1bp, closing at 3.493% and 3.482% per annum, respectively. The 20-year yield rose 1.2bp to 3.486% per annum. The 30-year and 50-year yields each increased by 1.1bp, recording 3.404% and 3.381% per annum, respectively.

The U.S. one-year short-term expected inflation, announced at the end of last week (the 10th), rose to 3.5% from 3.2% the previous month, weakening expectations for interest rate cuts.

Market participants also adopted a wait-and-see stance ahead of the U.S. April Producer Price Index (PPI) and Consumer Price Index (CPI) releases scheduled for the 14th and 15th.

Meanwhile, due to a lack of new factors, it is expected that the market trend is unlikely to change significantly in the near term.