Seoul: On October 17, 2024, South Korea’s bond market experienced varied shifts in yields across different maturities, according to the latest data. The movements in yields reflect ongoing adjustments in investor expectations and market conditions.
According to Yonhap News Agency, the 1-year Treasury bond (TB) yield saw a slight increase of 0.8 basis points, closing at 2.850 percent up from 2.842 percent. Similarly, the 2-year TB yield rose by 0.7 basis points to 2.914 percent from 2.907 percent. More significant changes were observed in the 3-year TB, where yields increased by 1.7 basis points, ending at 2.897 percent from a previous 2.880 percent.
The 10-year TB also experienced a notable increase, with yields rising by 2.0 basis points to reach 3.028 percent from 3.008 percent. This reflects a continued investor focus on longer-term securities amid varying economic forecasts.
Additionally, the 2-year Municipal Stability Bond (MSB) yield increased by 1.7 basis points to 2.899 percent from 2.882 percent.
The 3-year Corporate Bond (CB) rated AA- also saw a yield increase of 1.5 basis points, ending at 3.467 percent from 3.452 percent.
Contrarily, the 91-day Certificate of Deposit (CD) yield decreased by 1.0 basis points, settling at 3.390 percent down from 3.400 percent. This slight decline in short-term deposit rates might indicate a shift in liquidity preferences among banks and financial institutions.
These changes in bond yields are critical for investors and policymakers, providing insights into the economic outlook and expected monetary policy adjustments in South Korea.