"FOMC March interest rate hike ... bond interest rate vigilance maintenance"
The central bank's Federal Reserve System (Fed) will freeze the benchmark interest rate in January, and the yield on the bond market is expected to ease slightly for the time being.
The Federal Open Market Committee (FOMC) held a regular meeting yesterday to freeze the benchmark interest rate to 1.25 to 1.50 percent.
The decision, which was made at the last monetary policy meeting held by Yelhn, was unanimous.
The Fed expects inflation to rise this year and expect it to stabilize around the mid-term inflation target of 2 percent. Inflation expectations expected in the financial markets have risen in recent months but are still low.
In January, the FOMC said that the interest rate will have a limited impact on the financial market since the base rate was raised by 0.25 percentage points in December, "It will be a momentum to calm the surge in the stock market."
The KIEP said, "The reflationary sentiment against bonds due to the rise in inflation expectations and the stock market rally, which had been ongoing since the end of last year, could be mitigated to a limited extent through this conference, He added.
"The decision by the FOMC to freeze the federal interest rate is a result that has not largely deviated from the market's expectation." At this meeting, we confirmed a positive outlook for prices, There will not be a great deal of interest rate hike. "
"The short-term surge in US Treasury yields to the 10-year 10-year rate has been a short-term surge, but there is a perception that the interest-rate-boosting material has already started," he said.
However, since the March rate hike is likely, it is likely that the vigilance will likely continue.
"We believe that the inflation rate is low but the inflation outlook is slightly higher than the FOMC in December last year, while maintaining confidence in the economy, including employment," said Kang Sang-hoon, a senior research fellow at KB Securities. "After the FOMC, And 10 years and 30 years have fallen, and it is a fact that the increase in March is actualized. "
"The FOMC's recent rate hike is expected to be eased somewhat, but the outlook for the March FOMC and the third increase will be maintained," he added.
KTB interest rates were closed on a maturity basis. Interest rates have fallen overall due to recent surge, while 30-year and 50-year yields have risen slightly.
The three-year Treasury note interest rate fell by 3.0bp (1bp = 0.01% p) from the previous day to 2.274% and 10-year stocks fell by 1.5bp to 2.769%.
The 30-year and 50-year stocks continued to rise and rose 0.6bp and 1.6bp, respectively.