Rise in Treasury Bond Yields [Yonhap News] 

Amid significant volatility in the foreign exchange market, which saw the won-dollar exchange rate surge at the opening and close lower, Treasury bond yields rose across the board.

On this day, in the Seoul bond market, the yield on the 3-year Treasury bond closed at 3.784% per annum, up 3.4 basis points (1bp = 0.01 percentage point) from the previous trading day.

The yield on the 10-year bond rose by 5.3bp to 4.171% per annum. The 5-year and 2-year yields rose by 5.6bp and 2.2bp, respectively, closing at 4.005% and 3.630% per annum.

The 20-year yield increased by 3.2bp to 4.264% per annum. The 30-year and 50-year yields rose by 5.5bp and 5.1bp, respectively, recording 4.259% and 4.119% per annum.

Foreign investors net sold 8,173 contracts of 3-year Treasury futures and 2,222 contracts of 10-year Treasury futures.

On this day, the won-dollar exchange rate opened at 1,537.40 won, up 10.3 won from the previous trading day.

This was due to the strengthening dollar after the U.S. central bank, the Federal Reserve (Fed), hinted at interest rate hikes within the year following its Federal Open Market Committee (FOMC) meeting on the 17th (local time).

Overnight, the dollar index, which represents the dollar's value against a basket of six major currencies, rose above 100.9, reaching its highest level in one year and one month since May of last year.

However, the won-dollar exchange rate gradually narrowed its gains after fluctuations, with the weekly closing price (as of 3:30 PM) falling by 1.0 won to 1,527.0 won compared to the previous session.

Ahn Ye-ha, a researcher at Kiwoom Securities, analyzed, "Uncertainty increased overall due to noise surrounding the memorandum of understanding (MOU) for the cessation of hostilities between the U.S. and Iran, putting upward pressure on Treasury bond yields. The rise in the won-dollar exchange rate in early trading also served as a factor pushing up yields, but the rate of increase was limited as the exchange rate fell back in the latter half of the trading day."