BOJ Rate Hike Fails to Spur Treasury Yields Amid Oil Price Drop

The Korean bond market saw yields on various Treasury bonds decrease following the Bank of Japan's rate hike to 1.25%, its highest level in 31 years.

The 3-year yield fell by 2.8 basis points (bp) to close at 4.035% on the 18th, while the 10-year yield dropped by 4.0 bp to 4.466%. The 5-year and 2-year yields also declined by 3.7 bp and 1.4 bp, respectively.

Longer-dated bonds saw drops as well, with the 20-year at 4.480%, the 30-year at 4.573%, and the 50-year at 4.550%. In the Treasury futures market, 3-year futures rose by 8 ticks and 10-year futures by 24 ticks.

Foreign investors demonstrated strong buying interest, net purchasing 13,621 contracts of 3-year Treasury futures, indicating robust demand.