South Korean Bond Yields Show Varied Changes in October

SEOUL: South Korean bond yields exhibited a range of fluctuations on October 16, 2024, with notable declines in longer-term treasury bonds and stability in short-term certificates of deposit. According to Yonhap News Agency, the yields on one-year treasury bonds slightly dropped from 2.842 to 2.849, marking a decrease of 0.7 basis points. The two-year treasury bonds saw a more significant reduction, moving from 2.907 to 2.936, a drop of 2.9 basis points. Similarly, three-year treasury bond yields decreased from 2.880 to 2.906, reflecting a 2.6 basis point drop. The most substantial decline was observed in the 10-year treasury bonds, where yields fell from 3.008 to 3.050, a reduction of 4.2 basis points. In the municipal sector, the two-year municipal standard bonds (MSB) yields decreased by 2.4 basis points, from 2.882 to 2.906. Furthermore, the three-year corporate bonds (CB) rated AA- also experienced a decrease in yield from 3.452 to 3.475, down by 2.3 basis points. Contrasting with these trends, the 91 -day certificate of deposit (CD) maintained stability with its yield remaining constant at 3.400. These fluctuations in bond yields reflect ongoing adjustments in the South Korean financial markets, influenced by both domestic economic conditions and international financial dynamics.