SEOUL: South Korean bond yields experienced an uptick in the morning trading session on October 18, 2024, reflecting a modest increase across various maturities according to data released today.
According to Yonhap News Agency, the yields on one-year treasury bills (TB) climbed to 2.859% from the previous session’s 2.850%, marking a 0.9 basis point rise. Similarly, the two-year TBs saw an increase to 2.923% from 2.914%, and three-year TBs edged up to 2.903% from 2.897%. The most notable rise was observed in the 10-year TBs, which increased by 2.6 basis points, reaching a yield of 3.054%, up from 3.028%.
In addition to treasury bills, other types of bonds also saw changes. The two-year municipal standard bonds (MSB) rose slightly by 0.9 basis points to 2.908%. The three-year corporate bonds (CB) rated AA- increased marginally by 0.5 basis points to a yield of 3.472%.
These changes in bond yields may indicate investor reactions to recent economic data or shifts in monetary policy expectations, although these
specific drivers were not detailed in the reports. Typically, bond yields can influence other interest rates, including mortgage and loan rates, affecting both individual and business financial decisions.