On the 4th, yields on government bonds fell across the board as expectations for a U.S. interest rate cut resurfaced.
In the Seoul bond market that day, the yield on 3-year government bonds closed at 3.390% per annum, down 4.4 basis points (1bp = 0.01 percentage points) from the previous trading day.
The 10-year yield fell 6.2bp to 3.470% per annum. The 5-year and 2-year yields dropped 5.4bp and 3.9bp, closing at 3.412% and 3.411% per annum, respectively.
The 20-year yield declined 5.5bp to 3.396% per annum. The 30-year and 50-year yields each fell 5.0bp, recording 3.318% and 3.304% per annum, respectively.
The U.S. May Manufacturing Purchasing Managers' Index (PMI) fell to 48.7 from 49.2 in April. A PMI below 50 is interpreted as 'economic contraction.' Market analysts suggest that the possibility of the U.S. Federal Reserve (Fed) cutting the benchmark interest rate has slightly increased.
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