South Korea's 3-Year Treasury Yields Fall 2.8bp to 3.867%, Curve Steepens on July 21

According to Yonhap Infomax, South Korea's bond market saw short-to-mid-term treasury yields decline today (July 21), with the 3-year yield falling 2.8 basis points to 3.867% and the 10-year yield dropping 0.8bp to 4.328%. Longer-dated yields rose, with the 30-year jumping 4.4bp to 4.564%, steepening the yield curve.

Bond purchases outweighed sales due to post-monetary policy committee execution flows and corporate buying demand. The won's strength against the dollar—declining 5 won to 1,463.40—also supported the market. Semiconductor company buying activity reportedly energized shorter-end trading, though caution ahead of Q2 GDP data release tempered overall direction.