On July 8, government bond yields mostly declined within a narrow range, influenced by news of the United States' plans to impose reciprocal tariffs.
On this day in the Seoul bond market, the yield on three-year government bonds closed at 2.477% per annum, down 0.5 basis points (1bp=0.01 percentage point) from the previous trading day.
The yield on the ten-year bond rose by 0.7 basis points to 2.847% per annum. The yields on the five-year and two-year bonds fell by 0.2 basis points and 1.1 basis points, closing at 2.635% and 2.442% per annum, respectively.
The yield on the twenty-year bond remained unchanged from the previous day at 2.845% per annum. The yields on the thirty-year and fifty-year bonds declined by 0.1 basis points and 0.2 basis points, recording 2.748% and 2.645% per annum, respectively.
The bond market focused on the reciprocal tariffs that the United States has notified it would impose on Korean exports. However, since there is effectively about three weeks of negotiation time gained, the immediate impact on the market is considered to be limited.
Previously, on July 7 local time, U.S. President Donald Trump sent a letter to President Lee Jaemyung, announcing that the imposition of the 25% reciprocal tariff, which was scheduled to begin on July 9, would be postponed and instead take effect from August 1.
Foreign investors were net buyers of 5,340 contracts of three-year government bond futures, while they were net sellers of 3,496 contracts of ten-year government bond futures.
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