On the 5th, government bond yields fell across the board.
On that day, in the Seoul bond market, the yield on 3-year government bonds closed at 2.918% per annum, down 1.7 basis points (1bp = 0.01 percentage points) from the previous trading day.
The 10-year bond yield fell 2.3bp to 3.073% per annum. The 5-year and 2-year yields dropped 2.3bp and 1.7bp respectively, closing at 2.971% and 2.939% per annum.
The 20-year yield declined 3.1bp to 2.999% per annum. The 30-year and 50-year yields fell 2.5bp and 2.3bp respectively, recording 2.911% and 2.830% per annum.
The decline in government bond yields is attributed to the fall in U.S. Treasury yields ahead of the U.S. presidential election the previous day.
The 10-year U.S. Treasury yield, which had been above 4.35%, fell below 4.3% during the session.
Yumi Kim, a researcher at Kiwoom Securities, said, "Ahead of major events such as the U.S. presidential election and the FOMC (Federal Open Market Committee), the weekend's presidential poll results showed Kamala Harris (Democratic presidential candidate) narrowing the gap with Donald Trump (Republican candidate), reversing the recent 'Trump trade' in the bond market."
On that day, foreign investors net sold 6,719 contracts of 3-year government bond futures and net bought 1,595 contracts of 10-year government bond futures.
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