Highest since August 2018… “Weak buying sentiment in the bond market”
On the 29th, KTB yields rose sharply all at once, breaking new records for all sectors.
In the Seoul bond market, the yield of the 3-year government bond ended at 2.103% a year, up 8.6bp (1bp = 0.01% point) from the previous trading day.
This is the highest level in about three years and three months since August 3, 2018 (2.108% per annum).
The 10-year bond yield rose 17.8 basis points to 2.575% per annum.
The 5-year and 2-year bonds rose 12.8 bps and 8.5 bps, respectively, to close at 2.405% and 1.832% per annum.
The 20-year bond rose 12.7bps to 2.523% a year.
Both 30-year and 50-year bonds rose 12.0bp to record 2.493% and 2.493% a year.
KTB yields, which have been on a streak due to recent inflationary pressures and concerns about premature tightening, fell on the previous day’s intervention by the authorities and seemed to be entering a ‘breathing’.
The Bank of Korea decided to reduce the issuance of Monetary Stabilization Securities in November to 6.6 trillion won, down by 2.4 trillion won from the planned amount, and to increase the amount of mid-term redemption from 4 trillion won to 5 trillion won.
The Ministry of Strategy and Finance also announced that it would reduce the issuance of short-term government bonds from November in response to the increase in volatility in the government bond market and, if necessary, make an emergency buyback (purchase).
However, as investor sentiment, which had been weakened by the unfavorable macro environment, did not recover, the bond market turned bearish one day after turning bullish.
An Ye-ha, a researcher at Kiwoom Securities, said, “Buying sentiment in the bond market is still weak. looked forward
Oh Chang-seop, a researcher at Hyundai Motor Securities, also explained, “Domestic bond yields have risen excessively considering the future base rate forecast.
┌─────────┬─────────┬────────┬────────┐
│ │ Same day (afternoon·%) │ Previous day (%) │ Compared to previous day (bp) │
├─────────┼─────────┼────────┼────────┤
│ KTB (1 year) │ 1.410 │ 1.320 │ +9.0 │
├─────────┼─────────┼────────┼────────┤
│ KTB (2 years) │ 1.832 │ 1.747 │ +8.5 │
├─────────┼─────────┼────────┼────────┤
│ KTB (3 years) │ 2.103 │ 2.017 │ +8.6 │
├─────────┼─────────┼────────┼────────┤
│ KTB (5 years) │ 2.405 │ 2.277 │ +12.8 │
├─────────┼─────────┼────────┼────────┤
│ KTB (10 years) │ 2.575 │ 2.397 │ +17.8 │
├─────────┼─────────┼────────┼────────┤
│ KTB (20 years) │ 2.523 │ 2.396 │ +12.7 │
├─────────┼─────────┼────────┼────────┤
│ KTB (30 years) │ 2.493 │ 2.373 │ +12.0 │
├─────────┼─────────┼────────┼────────┤
│ KTB (50 years) │ 2.493 │ 2.373 │ +12.0 │
├─────────┼─────────┼────────┼────────┤
│ Monetary Securities (2 years) │ 1.934 │ 1.842 │ +9.2 │
├─────────┼─────────┼────────┼────────┤
│Corporate bonds (3 years without guarantee) │ 2.573 │ 2.487 │ +8.6 │
│ AA- │ │ │ │
├─────────┼─────────┼────────┼────────┤
│ CD 91 days │ 1.120 │ 1.100 │ +2.0 │
└─────────┴─────────┴────────┴────────┘
/yunhap news
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