Government bond yields closed mixed on the 10th, fluctuating amid concerns over U.S. tariffs.
In the Seoul bond market, the 3-year government bond yield rose by 0.3 basis points (1bp=0.01 percentage points) from the previous trading day to 2.638% per annum.
On the other hand, the 10-year yield fell by 0.6bp to close at 2.830% per annum. The 5-year and 2-year yields also declined by 0.6bp and 0.5bp respectively, recording 2.713% and 2.708% per annum.
Additionally, the 20-year yield dropped by 0.2bp to 2.737% per annum, while the 30-year and 50-year yields each rose by 1.0bp to close at 2.682% and 2.588% per annum respectively.
Government bond yields generally trended upward in the morning but shifted to a mixed trend in the afternoon. This was attributed to U.S. President Donald Trump’s announcement on the 9th (local time) aboard Air Force One that he planned to announce on the 10th the imposition of an additional 25% tariff on imported steel and aluminum products into the United States.
However, following this, there was speculation that President Trump’s remarks might be a negotiating tactic, leading the market to close without a clear direction.
On the day, foreign investors net sold 759 contracts of 3-year government bond futures and 295 contracts of 10-year government bond futures.
Meanwhile, in the integrated competitive bidding for 3 trillion won worth of 3-year government bonds held in the morning, total bids amounted to 9.275 trillion won, recording a bid-to-cover ratio of 309.2%. The bid yields ranged from 2.580% to 2.670%.
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