Yields Fall Across All Maturities
Trump's Delay of Tariff Measures Impacts Market
Government bond yields fell across the board on the 14th amid concerns over U.S.-imposed tariffs.
On that day in the Seoul bond market, the yield on 3-year government bonds closed at 2.611% per annum, down 2.0 basis points (1bp=0.01 percentage points) from the previous trading day.
The 10-year bond yield fell 2.6bp to 2.846% per annum. The 5-year and 2-year yields dropped 2.1bp and 0.5bp, closing at 2.711% and 2.688% per annum, respectively.
The 20-year yield declined 1.5bp to 2.760% per annum. The 30-year and 50-year yields fell 2.3bp and 2.2bp, recording 2.693% and 2.601% per annum, respectively.
This is interpreted as an effect of U.S. President Donald Trump delaying the implementation of reciprocal tariff measures. Earlier, on the 13th (local time), President Trump officially announced reciprocal tariffs but decided not to apply them immediately and to complete the review of tariff measures by April 1.
Foreign investors sold a net 14,725 contracts of 3-year government bond futures but bought a net 2,126 contracts of 10-year government bond futures.
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