South Korea T-bond yields hit record-low closing rates

12 Jan, 2015

SEOUL: South Korean treasury bond yields for all maturities fell to record-low closing rates on Monday as President Park Geun-hye's comment on the interest rate policy prompted traders to boost expectations for a rate cut soon.

Yields on the 1-year treasury notes shed 4.1 basis points to close at 1.981 percent. Yields for longer maturities all extended their recent record-breaking declines.

President Park told a news conference early in the day that regarding the issue of an interest rate reduction, policy authorities would respond in a timely manner through cooperation with each other.

Bond prices rallied despite clarification later by a policy aide to Park that she was not assuming an interest rate cut as a sure thing.

Copyright Reuters, 2015

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