SEOUL: South Korean bond yields experienced declines across multiple maturity spectrums on the morning of October 15, 2024, as the market reacted to various economic signals.
According to Yonhap News Agency, bond yields for 1-year, 2-year, 3-year, and 10-year Treasury bonds (TB) as well as longer-term municipal and corporate bonds witnessed a downward shift as of 11:30 am when compared to their previous session. The 1-year Treasury bond yield slightly decreased by 0.5 basis points, moving from 2.857% to 2.852%. More significant changes were observed in the 2-year and 3-year Treasury bonds, which fell by 2.1 and 2.5 basis points respectively, settling at 2.941% and 2.913%.
The 10-year Treasury bond, often viewed as a benchmark for long-term interest rates, saw a reduction of 2.7 basis points, bringing the yield down to 3.060%. In the municipal sector, the 2-year Municipal Stability Bonds (MSB) decreased by 2.3 basis points to 2.905%. Additionally, the 3-year Corporate Bonds (CB) rated AA- recorded a yield de
crease of 2.6 basis points, concluding at 3.483%.
These shifts in bond yields may reflect investor sentiments regarding economic policies, inflation expectations, or changes in the domestic and global economic environments. Bond yields are crucial indicators in financial markets, influencing various economic factors including mortgage rates and the cost of borrowing.