Korean Treasury futures declined in overnight trading on July 24, driven by a sharp surge in international crude oil prices. The 3-year Treasury futures closed 7 ticks lower at 102.62 compared to the previous day's regular session close, while the 10-year futures fell 21 ticks to 104.34. The decline occurred as Brent crude oil surged approximately 7% amid concerns over Red Sea blockade risks, heightening market vigilance ahead of the Federal Open Market Committee (FOMC) meeting scheduled for July 28–29.
3-Year Treasury Futures Fall 7 Ticks in Overnight Session
According to the Seoul bond market on July 24, the 3-year Treasury futures closed at 102.62 in overnight trading, down 7 ticks from the previous day's regular session close. Foreign investors net sold 124 contracts, while financial investment firms and individual investors net purchased 72 contracts and 52 contracts respectively. Trading volume for the 3-year maturity increased to 386 contracts from 96 contracts in the previous trading session.
10-Year Treasury Futures Drop 21 Ticks Amid Oil Price Surge
The 10-year Treasury futures finished overnight trading at 104.34, down 21 ticks. Foreign investors and individual investors net purchased 2 contracts and 14 contracts respectively, while financial investment firms net sold 16 contracts. Trading volume for the 10-year maturity decreased to 79 contracts from 87 contracts in the previous session.
US Treasury Yields Rise Across Maturities
During the same period, US Treasury yields exhibited gains concentrated in shorter maturities. The 10-year and 30-year US Treasury yields rose 3.80 basis points and 1.50 basis points respectively compared to the previous New York market close. The 2-year yield increased 5.10 basis points. The yield movements reflected heightened concerns ahead of the FOMC meeting following the crude oil price surge and surprise US weekly unemployment data.
Brent Crude Surges Above $100 for First Time Since May
International crude oil prices surged approximately 7% as Red Sea blockade concerns intensified. Brent crude September futures closed at $100.69 per barrel, up about 7% from the previous session. This marked the first time the nearest-month contract closed above $100 since May 22. West Texas Intermediate (WTI) crude September futures finished at $92.19, up more than 6% from the previous session.
According to the US Department of Labor, initial jobless claims for the week ending July 18 totaled 187,000 on a seasonally adjusted basis, down 22,000 from the previous week. This represented the lowest level since September 1969, approximately 57 years prior, and came in below market expectations of 212,000.
FAQ
What caused Korean Treasury futures to decline in overnight trading on July 24?
Korean Treasury futures fell in overnight trading on July 24 due to a sharp surge in international crude oil prices. The 3-year futures dropped 7 ticks to 102.62, and the 10-year futures declined 21 ticks to 104.34, as Brent crude oil surged approximately 7% amid Red Sea blockade concerns and ahead of the FOMC meeting scheduled for July 28–29.
How did foreign investors trade Korean Treasury futures in the overnight session?
Foreign investors net sold 124 contracts of 3-year Treasury futures and net purchased 2 contracts of 10-year Treasury futures during the overnight session on July 24. Financial investment firms net purchased 72 contracts of 3-year futures but net sold 16 contracts of 10-year futures, while individual investors net bought 52 contracts of 3-year futures and 14 contracts of 10-year futures.
