On the 12th, government bond yields showed mixed trends as they awaited the US inflation index.
In the Seoul bond market that day, the 3-year government bond yield closed at 2.550% per annum, down 1.0bp (1bp=0.01 percentage point) from the previous trading day.
The 10-year yield rose by 0.3bp to 2.763% per annum. The 5-year and 2-year yields fell by 1.4bp and 1.7bp respectively, closing at 2.619% and 2.633% per annum.
The 20-year yield increased by 0.2bp to 2.676% per annum. The 30-year and 50-year yields each rose by 0.3bp, recording 2.566% and 2.439% per annum respectively.
Government bond yields closed mixed and steady amid caution over the US February Consumer Price Index (CPI) to be announced that evening Korea time. The current market consensus expects a 2.9% increase year-on-year.
With growing concerns over the recent US economic slowdown, if the CPI comes out higher, the possibility of stagflation (economic stagnation amid high inflation) could gain traction.
Meanwhile, foreign investors net purchased 10,080 contracts of 3-year Treasury futures but net sold 5,003 contracts of 10-year Treasury futures.
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