Is the world low interest rate broken? Government “Important Variable in the International Financial Market on the Rise of US Treasury Rates”

Kim Yong-beom, the first vice minister of the Ministry of Strategy and Finance, said at a macroeconomic and financial conference held at the Seoul Bank Hall on the 9th, “The rising US Treasury bond rate is expected to become an important variable in the international financial market in the future.” “There may be an unstable flow, such as the outflow of foreign capital in emerging countries,” he said.

It is analyzed that the inflation risk is remarkable as expectations for an economic recovery have spread due to the recent corona 19 (Wuhan pneumonia) vaccination, etc.

In the Seoul bond market on the 8th, the 10-year Treasury bond rate ended at 2.028% per year, up 3.6bp (1bp=0.01% points) from the previous trading day due to the rise in the US Treasury bond rate. It has been two years since March 7, 2019 (2.005%) that the 10-year Treasury Bond yield has exceeded the 2% level based on the final bid price.

Deputy Minister Kim said, “There is a lot of prospects that the easing monetary policy of major countries such as the US will continue for a long time behind the rebound in the domestic and foreign financial markets in a short period of time.” It was diagnosed as a situation where attention is drawn to how long the keynote will be maintained.”