KOSPI closes below the 3,000 line for two consecutive days▶ Click here for a larger view
Financial market anxiety triggered by the rise in US Treasury yields is not easing.
As bond yields continued to rise, the KOSPI plunged more than 2% during the intraday on the 9th, and bond prices weakened to short-term. The won/dollar exchange rate peaked in five months.
◇ KOSPI fell for four consecutive days… 2% drop during intraday
On this day, the KOSPI declined for four consecutive days, closing at 2,976.12, down 19.99 points (0.67%) from the previous trading day. Also, it fell below the 3,000 line for two days in a row.
Based on the closing price, it is the lowest level in two months since January 6 (2,968.21), the day before the first breakthrough of the 3,000 line.
At one time in the morning, it fell more than 2% to 2,929.36. However, in the afternoon, when the Chinese stock market narrowed down on reports that China’s state-owned funds began to buy stocks, it partially made up for the fall.
Rising interest rates continue to burden the market and dampen investor sentiment.
In particular, the KOSPI also showed weakness, mainly in technology stocks and growth stocks, in the aftermath of a 2.41% drop in the technology stock-centered NASDAQ index in the New York Stock Market the day before.
The KOSDAQ index closed at 896.36, down 8.41 points (0.93%) from the battlefield, and fell below the 900 line in 3 months.
Lee Kyung-min, a researcher at Daishin Securities, said, “The stock market is sensitive to interest rate volatility.”
KOSPI decline start▶ Click here for a larger view
◇ Government bond yields continue to rise… 5-year product surge 9.5bp
As the US Treasury bond yield continued to rise, the Treasury bond yield continued to rise.
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 previous day’s 10-year interest rate rose above the 2% level for the first time in two years based on the closing price, and the trend continued on this day.
Short-term securities, which are sensitive to changes in the benchmark interest rate, also showed a sharp rise from the previous day. The 3-year Treasury bond rate ended at 1.206% per year, up 6.7bp from the previous trading day.
The 5-year product rose 9.5bp to 1.592% per year, and the 1-year product rose 0.8bp to 0.695% per year, respectively.
The rise in bond yields, which was mainly for long-term bonds, leads to an increase in mid- and short-term bonds under five-year bonds.
The continued rise in US Treasury yields last night affected the domestic bond market as well.
As the passage of large-scale stimulus measures worth $1.9 trillion went into the countdown, the 10-year Treasury bond yield soared above 1.6% per year during the intraday last night.
▶ Click here for a larger view
◇ Resumption of strong dollar due to financial market uncertainty… Won/Dollar Exchange Rate Highest in 5 Months
On this day, the won/dollar exchange rate in the Seoul foreign exchange market also closed at 1,140.3 won per dollar, up 7.1 won from the previous day’s closing price.
It is the highest in about five months since last year’s October 19th (closed price of 1,142.0 won). Following the increase of 7.1 won the day before, it increased significantly for two consecutive days.
The continued weakness of the yuan amid growing hedging sentiment in the financial market contributed to the fall in the won’s value.
Samsung Futures researcher Jeon Seung-ji said, “The factor that will lead the market for the time being is interest rates.” Looked out.
Meanwhile, Kim Yong-beom, the first vice minister of the Ministry of Strategy and Finance, presided over a macroeconomic and financial conference at the Bank Hall on the same day and said, “The rise in US Treasury yields is expected to become an important variable in the international financial market in the future.” “There may be an unstable trend such as price adjustment or foreign capital outflow in emerging countries,” he said.
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 observe the relevant trends and respond promptly.”
Vice Minister Kim Yong-beom presides over the Macroeconomic Finance Conference▶ Click here for a larger view
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