South Korean government bond prices were mixed on Friday, with a steady near-term interest rate outlook lifting short-dated paper ahead of the central bank's rate review next week whereas longer-term bonds fell. The one-year Treasury bond yield fell 1 basis point to 3.44 percent while the 10-year yield rose 4 basis points to 5.47 percent.
December three-year Treasury bond futures gained 1 tick to 108.81. The Bank of Korea is widely expected to hold the seven-day repurchase agreement rate steady at a record-low 2.0 percent next week and in December, although money-market rates price in chances for at least one rate rise over the next three months.
The central bank is due to hold its monthly policy meeting on November 12. Longer-term bonds were hurt by a rebound in equities markets around the world on a reduced concern about the economy. On the week, the 1-year treasury yield fell 7 basis points while the benchmark 5-year yield added 4 basis points.
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