South Korea's Government Bond Futures Fall on U.S.-Iran Tensions; 10-Year Yield Hits Month High

According to Yonhap Infomax, South Korea's government bond futures fell sharply on July 9 amid renewed concerns over U.S.-Iran conflict escalation. The 3-year bond futures dropped 11 ticks to 103.01, while 10-year futures fell 32 ticks to 105.59. The 10-year benchmark yield surged to 4.292%, marking its highest level in approximately one month. Foreign investors sold a net 2,341 contracts of 3-year futures and 1,026 contracts of 10-year futures.

The weakness was attributed to geopolitical tensions after U.S. President Donald Trump signaled potential resumption of conflict with Iran, though he later tempered remarks by stating he did not expect war to restart. August WTI crude oil settled at $73.52 per barrel, up 4.37%, contributing to broader risk sentiment shifts affecting bond valuations.