Even when the BOK begins to purchase KTBs
KTB 10-year bond rose 0.6bp
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In order to stabilize the bond market, the Bank of Korea started to purchase KTBs announced in the first half of the year. Nevertheless, the trend of KTBs continued to rise.
The BOK announced that it had bought 2 trillion won worth of KTBs through the’Competitive Bidding Results for Simple Purchase of KTBs’ announced on the website on the 9th. A total of 4.2 trillion won was concentrated in the bidding, and the 2 trillion won of the BOK’s planned purchase was a successful bid.
The amount of successful bid for each type of bond is △10-year KTB: 1.17 trillion won, △5-year KTB 140 billion won, and △3-year KTB 690 billion won.
The BOK previously announced on the 26th of last month that it would simply purchase 5 to 7 trillion won worth of KTBs in the first half of this year to reduce market interest rate volatility.
However, despite the BOK’s actual purchase of KTBs on this day, the trend of rising KTB yields did not stop.
On this day, the 10-year Treasury bond rate in the Seoul bond market ended at 2.034% per year, up 0.6bp (1bp=0.01% points) from the previous trading day.
The interest rate for short-term bonds was also excellent, and the 3-year Treasury bond rate reached 1.206% per year, 6.7bp higher than the previous trading day. It is the first time in two years since February 20 (1.234%) last year that the 3-year Treasury Bond has exceeded 1.2% per year.
The interest rates for 5-year bonds (1.592% per year) and 1-year bonds (0.695% per year) also rose 9.5bp and 0.8bp, respectively.
/ Reporter Yang Sa-rok [email protected]
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