Korean 30-Year Government Bond Yields Reach 4.6% Record High on the 22nd

Korean government bond 30-year yields surpassed 4.6% during trading on the 22nd at 9:34 AM, marking a record high for the benchmark instrument. The movement followed global bond curve steepening trends, with the 26-2 series yield rising 3.0 basis points to 4.600% and briefly touching 4.612% in early trading. Market participants attributed the increase to alignment with US Treasury curve dynamics, where the 30-year to 10-year spread reached approximately 50 basis points compared to Korea's 24 basis point spread.

Korean 30-Year Government Bond Yields Hit 4.6% on the 22nd

The 30-year Korean government bond benchmark instrument (26-2 series) recorded a yield of 4.600% at 9:34 AM on the 22nd, representing a 3.0 basis point increase from the previous session. According to bond market data, the yield reached 4.612% during early trading hours, establishing a record high for the benchmark instrument on an intraday basis.

Shorter-duration government bonds also experienced yield increases. The 3-year benchmark instrument yield rose 2.9 basis points to 3.895%, while the 10-year benchmark yield climbed 2.4 basis points to 4.358%.

Dealers Cite Global Curve Steepening as Primary Driver

A bond dealer at a securities firm stated the movement reflects attempts to follow global curve trends. The dealer noted that securities firms have been selling 30-year Korean government bonds since the previous day.

The dealer commented that room exists for further steepening when considering US long-term spreads. The statement referenced the differential between Korean and US Treasury curve structures as a factor in current market positioning.

Korea-US Treasury Spread Comparison Shows Divergence

The US Treasury 30-year to 10-year yield spread stood at approximately 50 basis points as of the previous day. In contrast, the Korean government bond 30-year to 10-year spread measured 24 basis points on a 民平 (min-pyeong) basis as of the previous day, significantly lower than the US equivalent.

This divergence in curve steepness between the two markets formed part of the rationale cited by market participants for the upward pressure on Korean long-duration yields.

FAQ

What yield level did Korean 30-year government bonds reach on the 22nd?

Korean 30-year government bond yields reached 4.600% at 9:34 AM on the 22nd, with an intraday peak of 4.612%. This represented a 3.0 basis point increase from the previous session and marked a record high for the benchmark instrument.

Why did Korean long-term bond yields increase on the 22nd?

Market participants attributed the increase to alignment with global bond curve steepening trends. A securities firm dealer stated that the movement followed global curve dynamics, noting that the US Treasury 30-year to 10-year spread stood at approximately 50 basis points compared to Korea's 24 basis point spread, suggesting room for further steepening in Korean bonds.