The 3-year Treasury yield fell to 3.21%, its lowest level in four months, as markets began pricing in a possible Bank of Korea rate cut in October.
The bond rally follows inflation data that came in more benign than expected.
“The rally should hold in the near term, but a reversal is possible if the cut doesn’t actually materialize,” one bond analyst said.
About the author
Do-yun Kim
Fixed Income Correspondent · Bonds
