South Korea 10-Year Yield Hits 4-Week Low

South Korea’s 10-year government bond yield fell to around 4.15% in early August, hitting a four-week low as it tracked a decline in global bond yields. Qatar reported progress in mediation efforts to end the US-Iran conflict, although details remained limited, helping push oil prices lower and reduced inflation concerns. Nevertheless, the latest minutes from the Bank of Korea’s July meeting showed policymakers would carefully assess the timing and pace of further tightening, with some members favoring preemptive action to contain inflation risks. The seven-member board unanimously raised the policy rate by 25 bps last month, marking its first hike in three and a half years, while signaling that additional increases could follow amid stronger economic growth and persistent price pressures. However, this view was challenged by softer inflation data, as headline annual inflation slowed to a three-month low of 2.8% in July, down from 3.2% in June and below expectations of 3%.

Register a Revolut Business Account