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On the 22nd, Seoul’s financial market witnessed significant price swings for both the three‑year and ten‑year U.S. Treasury notes during after‑hours trading. The three‑year note held its previous close at 103.13, while the ten‑year surged to 105.32—an increase of 21 basis points from the prior day. Foreign investors and financial traders/individuals displayed net buying or selling balances, which in turn affected trade volumes.

Trade volume increased for the three‑year note—from 96 billion won to 178 billion won—and fell for the ten‑year note—from 179 billion won to 37 billion won. Foreign investors’ net purchases were 114 billion won on the three‑year and 24 billion won on the ten‑year, while financial traders/individuals net sold 64 billion and 50 billion respectively for the three‑year, and 6 billion and 18 billion for the ten‑year.

U.S. Treasury yields rose mainly in short‑term maturities; the U.S. 10‑year yield climbed 2.70 bp, the 30‑year 2.40 bp, and the 2‑year 4.60 bp relative to the previous day. Because bond prices move inversely to rates, Treasury notes also reacted in line with the market‑rate movements. In this trade, however, the U.S. rate rise was followed by a relative weakness of the domestic ten‑year.

The widening of U.S. long‑term yields weakened for only one day and pulled the ten‑year price down 29 bp. Alongside, the decline in U.S. long‑term rates and the domestic Treasury note’s relative softness appeared simultaneously, prompting investors to worry about interest‑rate risk. Moreover, foreign investors’ buying/selling decisions proved a catalyst, with their influence confirmed in this trade.