Government Bond Yields Mostly Decline... 3-Year Bond at 2.482% Annual Interest

10-Year Bond Yield Rises by 0.5bp to 2.754% Annually

On the 3rd, government bond yields generally declined. This is analyzed as a result of strong buying pressure flowing into the bond market at the beginning of the year, causing most yields to fall. Bond prices and yields move in opposite directions.

In the Seoul bond market that day, the 3-year government bond yield closed at 2.482% per annum, down 2.5 basis points (1bp = 0.01 percentage points) from the previous trading day.

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The 5-year and 2-year yields also fell by 3.8bp and 0.4bp, closing at 2.643% and 2.677% per annum, respectively. The 20-year yield dropped 2.8bp to 2.740% per annum. The 30-year and 50-year yields declined by 1.4bp and 1.5bp, recording 2.678% and 2.567% per annum, respectively.

However, the 10-year yield rose by 0.5bp to 2.754% per annum.

Meanwhile, in the futures market, foreign investors showed a net selling trend. Foreign investors net sold 10,706 contracts of 3-year government bond futures and 7,049 contracts of 10-year government bond futures.