Korea Bonds Rise as China Slowdown Signs Boost Demand for Safety
This article is for subscribers only.
South Korean bonds advanced for a fourth day, sending the 10-year yield to a two-week low, as concern China’s slowing growth will hurt the region’s economies spurred demand for the safety of sovereign debt.
Factory output in China, the top destination for South Korean exports, was 8.6 percent in the January-February period, short of the 9.5 percent median estimate in a Bloomberg survey of analysts. The Bank of Korea decided unanimously to hold the benchmark seven-day repurchase rate at 2.5 percent today in a decision predicted by all 18 economists surveyed by Bloomberg News. The rate has remained unchanged since May.