South Korean benchmark bond yields rise to a one-year high as CPI accelerates, hitting expectations of interest rate cuts.

Due to inflation rising faster than expected, it has dampened expectations of further interest rate cuts by the central bank, causing South Korea's benchmark 10-year government bond yield to climb to its highest level in a year. The 10-year government bond yield in South Korea briefly rose by 7 basis points to 3.15%, reaching its highest level since November 2024. The 10-year government bond futures fell by 32 points to 115.61, dropping by 59 points at one point during the trading session. The South Korean won weakened. Data released by the South Korean government on Tuesday showed that the CPI rose by 2.4% year-on-year in October, higher than the expected 2.2%. Additionally, last week's report showed that South Korea's exports rebounded in October, benefiting from strong overseas demand for semiconductors.