South Korea's Government Bond Futures Rise on U.S. Inflation Data; 3-Year Up 7 Ticks on July 16

According to Yonhapinfomax, South Korea's government bond futures strengthened on July 16, tracking gains in overnight U.S. Treasury yields. The 3-year contract rose 7 ticks to 102.88, while the 10-year contract gained 12 ticks to 105.30 as of 9:03 a.m. Seoul time.

U.S. Producer Price Index data released overnight came in well below expectations, with headline PPI declining 0.3% month-on-month—the largest drop in 14 months—versus market forecasts of flat growth. Core PPI rose 0.2%, missing the expected 0.4% gain. Domestic markets remained cautious ahead of the Bank of Korea's July monetary policy meeting, where rate hikes are widely anticipated.