South Korea's 10-Year Bond Futures Fall 28 Basis Points Overnight as Middle East Tensions Rise

According to Yonhap Infomax, South Korea's government bond futures declined overnight on July 8 amid escalating geopolitical tensions in the Strait of Hormuz. The 10-year contract fell 28 basis points to close at 105.92, while the 3-year contract dropped 8 basis points to 103.02.

Tanker attacks in the Strait of Hormuz intensified the move—the UK Maritime Trade Operations (UKMTO) reported that a crude tanker was struck three times within 24 hours. The U.S. Treasury Department's Office of Foreign Assets Control (OFAC) announced the revocation of Iran General License X, ending permitted sales of Iranian crude and petroleum products as of August 21. U.S. Treasury yields rose across the curve, with 10-year yields up 8.20 basis points and 30-year yields breaching the key 5.0% level.