Government Bond Yields Fall Across the Board After Supplementary Budget Approval... 3-Year Yield at 2.362%

Yields on Government Bonds Fall Across the Board
Three-Year Yield Drops to 2.362%, Ten-Year to 2.620%
Supplementary Budget Approval Influences Market
Foreign Investors Continue Net Buying of Futures

On April 18, government bond yields fell across the board following the government's approval of an additional supplementary budget.

On this day, in the Seoul bond market, the yield on three-year government bonds closed at 2.362% per annum, down 2.3 basis points (1bp=0.01 percentage point) from the previous trading day.

The yield on ten-year bonds dropped by 2.5 basis points to 2.620% per annum. The yields on five-year and two-year bonds fell by 1.9 basis points and 2.5 basis points, closing at 2.464% and 2.403% per annum, respectively.

The yield on twenty-year bonds decreased by 1.8 basis points to 2.561% per annum. The yields on thirty-year and fifty-year bonds fell by 2.6 basis points each, recording 2.464% and 2.309% per annum, respectively.

Prime Minister Han Ducksoo, Acting President, is striking the gavel at the Cabinet meeting held at the Government Seoul Office on the 18th. Photo by Presidential Office Press Photographers Group

On this day, the government approved a supplementary budget of 12.2 trillion won at the Cabinet meeting. Approximately 4.4 trillion won was allocated to respond to changes in the trade environment and to strengthen the competitiveness of high-tech industries. About 4.3 trillion won was designated to support small business owners and vulnerable groups. Around 3.2 trillion won was assigned for disaster and emergency response.

Foreign investors maintained a net buying position in government bond futures for the fourth consecutive trading day. On this day, foreign investors posted a net purchase of 8,297 contracts for three-year government bond futures and 4,615 contracts for ten-year government bond futures, respectively.