Market Yields Record the Lowest for the Year

The real yields in the market recorded the lowest for the year on October 1.
The real yields for the benchmark three year due debentures fell by 0.55% points to 11.35% for the day, the lowest for the year since it recorded 11.7% on August 31.
The one day call rate between financial institutions fell to its lowest mark at 7% and Repurchasible Bonds (RPs) closed at 7.2%.
Some market analysts are estimating that within the month, one day call interest rates would fall to 6% or less than 7% and that of debentures (three year maturity) to the upper part of 10%.
The sharp fall in the level of interest rates is attributed to the strong intention for the lowering of interest rates by the Bank of Korea and the current affluent money supply of financial institutions.
As the Bank of Korea strongly indicated on September 30 that it will strive to pull down the level of interest rates, banks are lowering their interest rates for deposits and loans accordingly.