South Korea Government Bond Futures Fall on Overnight Oil Surge, Down 7-21bp

According to Seoul Bond Market data on July 24, South Korea's 3-year government bond futures fell 7 basis points to 102.62 overnight, while 10-year futures dropped 21 basis points to 104.34. The declines followed a sharp surge in international crude oil prices, with Brent crude's September contract rising approximately 7% to $100.69 per barrel, marking its highest level since May 22.

U.S. government bond yields also climbed during the same trading session, with 10-year yields up 3.80 basis points and 30-year yields up 1.50 basis points. The moves reflected rising caution ahead of the Federal Reserve's July 28-29 policy meeting, compounded by surprisingly strong U.S. employment data: initial jobless claims fell to 187,000 for the week ended July 18, a 57-year low that beat market expectations of 212,000.