On the 22nd, the Seoul bond market saw a mixed and chaotic trend in government bond yields, with fluctuations according to maturity. This has been interpreted as a result of the intertwining adjustments of domestic and foreign interest rate hike cycles and future economic prospects, leading to investors' expectations not having a clear direction.
On the same day, the 3-year government bond yield fell by 1.1bp (1bp = 0.01 percentage points) from the previous trading day, closing at an annual 2.999%. The decline in short-term yields, which are sensitive to benchmark rates, seems to reflect the recent stance of the Bank of Korea to maintain its monetary policy tone and expectations for price stabilization. At the same time, this is also partially interpreted as a concern over the short-term economic slowdown.
On the other hand, in the long-term bonds, the yield on the 10-year government bond rose by 1.7bp, recording an annual 3.359%, showing an upward trend. The rise in long-term yields is analyzed as the market considers that price pressures may rise again in the long term, or is affected by fluctuations in global bond market yields.