Treasury bond interest rates rise again even after BOK purchases… 10-year product 0.6bp↑
The Bank of Korea bought 2 trillion won worth of government bonds on the 9th to stabilize the bond market.
According to the’Competitive Bid Results for Simple Purchase of KTBs’, announced on the BOK’s website that day, the total amount of the BOK’s expected purchase amount (2 trillion won) was auctioned off with a total of 4.24 trillion won in the bid.
The successful bid amount for each type of bond is ▲ 10-year Treasury Bond 1.17 trillion won ▲ 5-year Treasury Bond 140 billion won ▲ 3-year Treasury Bond 690 billion won.
The BOK had already announced on the 26th of last month that it would simply buy 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 interest rates (falling KTB prices) did not break.
In the Seoul bond market, the 10-year Treasury bond rate 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.
/yunhap news
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