Treasury 3-year Treasury Treasury rate, touches 3.410% and rebounds slightly
(Seoul = Yonhap Infomax) Reporter Jeongwon Yoon = 10-year government bond futures jumped 200 ticks during the day. The news of Silicon Valley Bank (SVB) bankruptcy raised expectations that the US Federal Reserve could freeze its benchmark interest rate, and the government bond futures market soared.
According to the Seoul bond market on the 13th, government bond futures expanded their rise in the afternoon.
The 3-year government bond futures (KTB) recorded 104.49 at 3:14 pm on the same day, up 87 ticks from the previous trading day.
10-year government bond futures (LKTB) also showed 113.39, up 200 ticks from the previous trading day at the same time.
On this day, 10-year KTB futures showed a surge that surpassed Wonbig from the start. In the morning, there was a section where the rise was briefly reduced according to the movement of US bonds, but in the afternoon, the rise was greatly increased.
The news of SVB’s bankruptcy had an impact on the market’s reaction that the Federal Reserve should not stop at putting down the Big Step and even open the possibility of freezing.
According to the Chicago Mercantile Exchange (CME) FedWatch, the possibility of a 50 basis point rate hike at the Federal Open Market Committee (FOMC) in March in the current US federal funds rate futures market is 0%. It reached 40% in the last 10 days alone. On the other hand, on the 10th, the possibility of interest rate freeze by the Fed was 0%, but on this day, it was investigated as 1.8%.
Goldman Sachs also predicted that the Fed would keep the benchmark rate unchanged at its March meeting and raise it by three 25 basis points.
The decline in the dollar-won exchange rate also had an impact. In the afternoon, the dollar-won exchange rate increased and fell below 1,300 won.
As a result, the Korean 3-year Treasury Treasury yield was pushed to 3.410% during the intraday, but rose slightly ahead of the market close.
A bond manager at a securities company said, “After the news of Goldman Sachs’ interest rate freeze by the Fed came out, government bond futures leveled up once.”
jwyoon@yna.co.kr
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This article was serviced at 15:59, 2 hours earlier on the Infomax financial information terminal.
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