Government Bond Yields Rose Together on US Employment Increase... 3-Year Bond at 3.353%

Interest Rates Rise Across 10-Year and 20-Year Bonds

Government bond yields all rose on the 10th as expectations for a rate cut retreated following the U.S. 'employment surprise.'

On this day in the Seoul bond market, the 3-year government bond yield closed at 3.353% per annum, up 4.5 basis points (1bp = 0.01 percentage points) from the previous trading day.

The 10-year yield rose 4.8bp to 3.433% per annum. The 5-year and 2-year yields increased by 5.7bp and 6.2bp, closing at 3.386% and 3.404% per annum, respectively.

[Image source=Yonhap News]

The 20-year yield rose 4.4bp to 3.372% per annum. The 30-year and 50-year yields increased by 3.3bp and 3.1bp, recording 3.293% and 3.279% per annum, respectively.

Nonfarm payrolls announced by the U.S. Department of Labor on the 7th (local time) increased by 272,000 compared to the previous month, significantly exceeding market expectations of 190,000.

The indicator surpassing expectations was interpreted as meaning that the U.S. employment market remains strong, which appears to have dampened expectations for a monetary policy pivot by the U.S. Federal Reserve (Fed).