On the 27th, government bond yields rose due to the increase in U.S. Treasury yields.
In the Seoul bond market that day, the 3-year government bond yield closed at an annual rate of 3.220%, up 0.5bp (1bp=0.01 percentage points) from the previous trading day.
The 10-year yield rose 2.2bp to 3.300% annually. The 5-year and 2-year yields closed at 3.241% and 3.281% per annum, respectively.
The 20-year yield increased 2.6bp to 3.277% annually. The 30-year and 50-year yields rose 2.8bp and 2.5bp, closing at 3.219% and 3.190% per annum, respectively.
That day, government bond yields started higher in line with the U.S. Treasury market. U.S. Treasury yields rose sharply the previous day due to month-end profit-taking and concerns over yen weakness. The 10-year yield closed at 4.334%, up 8.2bp.
As the yen-dollar exchange rate surpassed the 160 yen level, market speculation arose that Japanese authorities might intervene in the foreign exchange market by selling U.S. Treasuries they hold, which exerted upward pressure on yields.
Foreign investors were net sellers of government bond futures that day. They sold a net 2,587 contracts of the 3-year and 6,591 contracts of the 10-year futures.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
