South Korea bond yield curve steepens as investors await Fed decision

SEOUL: South Korean bonds were mixed on Tuesday, with the yield curve steepening slightly as firm US manufacturing output data pushed investors to adjust for the possibility of additional tapering by the Federal Reserve this week.

The yield on the benchmark 10-year government bonds ended up 2.3 basis points (bps), while yield on the 5-year debt fell 0.5 bps.

March futures on three-year treasury bonds ended up 0.01 points on the contract's final day of trade. June futures on the three-year debt, which will now serve as the lead futures contract, ended up 0.02 points at 105.82.