U.S. Treasury bond yields rose across the board on the 29th following hawkish remarks from Federal Reserve (Fed) officials suggesting the possibility of a rate hike.
In the Seoul bond market that day, the 3-year Treasury bond yield closed at 3.425% per annum, up 3.1 basis points (bp, 1bp=0.01 percentage points) from the previous trading day.
The 10-year yield rose 5.5bp to 3.536% per annum. The 5-year and 2-year yields increased by 4.4bp and 2.0bp, closing at 3.465% and 3.444% per annum, respectively.
The 20-year yield climbed 4.4bp to 3.475% per annum. The 30-year and 50-year yields rose 3.9bp and 4.0bp, recording 3.394% and 3.378% per annum, respectively.
The hawkish comments from Fed officials, including Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, appeared to have intensified bond selling pressure.
On the 28th (local time), President Kashkari said in an interview with CNBC that the Fed might raise interest rates if inflation does not slow down further.
Earlier last week, Raphael Bostic, President of the Atlanta Fed, also mentioned expecting "higher rates for longer."
Additionally, the minutes of the May Federal Open Market Committee (FOMC) meeting released last week reaffirmed Fed officials' cautious stance on rate cuts.
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