Government Bond Yields

Government bond yields measure the annualized return on holding a sovereign bond to maturity. They are the most sensitive barometer of monetary policy direction: short-end yields reflect expectations for the central bank's policy path, while long-end yields embed inflation and growth expectations.

Korea (KTB): KR3Y captures monetary policy stance; KR10Y reflects long-term inflation expectations and foreign investor positioning.

United States (Treasuries): The global risk-free benchmark. US2Y tracks Fed rate expectations; US10Y drives mortgage rates, EM capital flows, and global asset pricing. The 2s/10s curve inversion is a classic recession leading indicator.

Germany (Bunds): Eurozone risk-free benchmark, reflecting ECB policy plus periphery fiscal risk and German industrial cycle.

Japan (JGBs): Strongly correlated with BOJ YCC adjustments, USD/JPY moves, and global carry-trade flows.