“Inflation risk highlights… market volatility increases”
(Seoul = Yonhap News) Reporter Baek Seung-ryul = Kim Yong-beom, the first vice minister of the Ministry of Strategy and Finance, is presiding over a macroeconomic financial conference held at the Seoul Bank Hall on the 9th. [email protected]
(Sejong = Yonhap News) Reporter Kwak Min-seo = Kim Yong-beom, the first vice minister of the Ministry of Strategy and Finance, diagnosed on the 9th that, “If the US Treasury rate continues to rise, there may be an unstable trend such as asset price adjustments due to risk avoidance or outflow of foreign capital from emerging countries.”
Vice Minister Kim held a macroeconomic and financial conference at the Seoul Bank Center on that day and said, “The rise in US Treasury yields is expected to become an important variable in the international financial market in the future.”
He analyzed that “the recent international financial market is seeing an increase in volatility in the bond market and the stock market, centering on US Treasury yields and some large technology stocks, as inflation risks have emerged due to expectations of economic recovery.”
He pointed out, “The reason why the domestic and foreign financial markets have rebounded in a short time is due to the expectation of economic recovery, but it is also partly due to the prospect that the easing monetary policy of major countries including the US will continue for a long time.”
He said, “As the US Treasury yield, which is the benchmark for pricing other assets, rises rapidly, market participants are drawing attention on how long the global low interest rate will be maintained.”
(Seoul = Yonhap News) Reporter Baek Seung-ryul = Kim Yong-beom, the first vice minister of the Ministry of Strategy and Finance, is presiding over a macroeconomic financial conference held at the Seoul Bank Hall on the 9th. 2021.3.9 [email protected]
Vice Minister Kim said, “For the time being, expectations for economic recovery and concerns about inflation and steep interest rate rises coexist, and market volatility is likely to continue, so the government will keep an eye on the relevant trends and respond promptly.”
He emphasized, “As the market volatility may increase in the future, according to the results of the US Treasury Bond bidding, the European Central Bank (ECB) monetary policy meeting, and the US Federal Open Market Committee (FOMC) discussions, we will closely monitor related trends.”
Earlier on the 8th, the 10-year Treasury bond rate in the Seoul bond market ended at 2.028% per year, up 3.6bp (1bp=0.01% points) from the previous trading day due to the increase in the US Treasury bond rate.
This is the first time in two years since March 7, 2019 (2.005%) that the 10-year Treasury Bond yield has exceeded the 2% line based on the final quoted yield.
Unauthorized reproduction-redistribution prohibited>
2021/03/09 08:34 sent