Today’s bond market KTB yields rise all at once… The 10-year bond also breaks through 4 units a year

KTB yields rose all at once (bond prices fell). This is the aftermath of central banks around the world fighting to raise the base rate, with Bank of Korea Governor Chang-yong Lee hinting at the possibility of a big step next month (a 0.5 percentage point increase in the base rate at a time).

According to the Bond Information Center of the Financial Investment Association on the 23rd, the three-year government bond closed at 4.199% a year, up 0.095 percentage points from the previous day. The five-year government bond finished trading at 4.193% per annum, up 0.079 percentage points. The 10-year government bond rose 0.115 percentage points to close at 4.112% per annum.

The 20-year Treasury bond rose 0.135 percentage points to close at 3.93%. The 30-year government bond yield rose 0.109 percentage point to 3.844% a year, and the 50-year government bond yield rose 0.116 percentage point to 3.785% a year. Treasury bond yields rose throughout the day.

Corporate bond yields are also rising. According to the Bond Information Center of the Financial Investment Association, the average interest rate for 3-year corporate bonds (AA-grade) rose 0.097% from the previous day to 5.189% per year, according to the Bond Information Center. The BBB-grade rate closed at 11.043% per annum, up 0.096% from the previous day.

Doosan Energy (formerly Doosan Heavy Industries & Construction) succeeded in forecasting demand for corporate bonds. Analysts say that it performed well despite the BBB-level credit rating limit and the market contraction following the US interest rate hike.

According to the investment banking (IB) industry, Doosan Energy received a total of 70 billion won in demand forecasting for 50 billion won in two-year corporate bonds held on the 22nd. An additional 100 billion won was secured through additional subscriptions. We are discussing how to increase the amount up to 800 billion won. The goal is to publish on the 29th. The secured funds will be used for debt repayment of 30 billion won, and the remaining funds will be used for operating expenses, etc.

It is attracting attention in that it performed well despite the weakness of BBB-grade non-premium corporate bonds. Investor sentiment toward non-premium corporate bonds has stagnated due to a series of interest rate hikes. Last month, SLL JoongAng, which predicted the demand for 45 billion won worth of corporate bonds, only received orders worth 22 billion won.

It is interpreted that the results were favorable thanks to retail demand, including individual investors. Doosan Energy’s credit rating is ‘BBB (stable)’. It is analyzed that retail demand for high-interest, low-credit corporate bonds, such as securities companies, was concentrated. Doosan Energy suggested an interest rate of 5.8% to 6.5% per annum as the desired interest rate for the public offering.
By Jang Hyeon-joo, staff reporter [email protected]

The article is in Korean

Tags: Todays bond market KTB yields rise once .. #10year bond breaks units year

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