Kim Yong-beom, the first vice minister of the Ministry of Strategy and Finance, said, “Recently, the investment sentiment in the government bond market is shrinking and volatility is expanding.”
At the macroeconomic financial conference held on the 23rd, Vice Minister Kim said, “It is time to thoroughly manage economic and financial risks in the process of overcoming the novel coronavirus infection (Corona 19).”
At the meeting, the domestic and foreign financial market trends, including the US government bond market, were examined intensively. “Contrary to expectations of some of the market last week, the Fed decided not to extend measures to deregulate the complementary leverage ratio (SLR),” said Vice Minister Kim. “There is an unstable situation, such as surpassing it,” he said. He said, “It is expected that interest rate volatility will continue depending on the remarks of key personnel at the US Congress hearings this week, future government bond bidding and the results of economic indicators, etc.” It is emerging as a factor in the financial market uncertainty.”
The domestic financial market is also affected by fluctuations in the global financial market due to the rise in US Treasury yields. Deputy Minister Kim said, “The domestic government bond market is on the rise as concerns over the burden of supply and demand for government bonds are acting on the impact of the rise in global interest rates, and interest rates are rising.” He diagnosed that interest rates were once reversed and volatility expanded.” On the 19th, the 10-year Treasury Bond interest rate soared to 2.099% a year, leading to a reversal of the 30-year interest rate (2.084%).
Deputy Minister Kim emphasized, “We will flexibly adjust the amount of government bond issuance according to the conditions of the government bond supply and demand and the movement of the yield curve,” and emphasized, “We will make every effort to stabilize the government bond market by implementing market stabilization measures in a timely manner when volatility increases.”
Reporter Seo Min-joon [email protected]
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