The South Korean government bonds plunged after the Bank of Korea in its last week’s monetary policy meeting left benchmark interest rate unchanged at 1.25 percent. Also, bond prices tracked a retreat in the U.S. Treasuries and dipped on Monday.
The 10-year bonds yield, which moves inversely to its price, rose 7 basis points to 1.621 percent and short-term 3-year bonds yield climbed 3 basis points to 1.352 percent.
The Bank of Korea in its monetary policy meeting left the key interest rate unchanged for the fourth consecutive month at 1.25 percent last Thursday, as expected. Additionally, the central bank kept this year's growth forecast unchanged at 2.7 percent, but revised next year's growth forecast down to 2.8 percent from 2.9 percent.
On Friday, the U.S. Government bond yields climbed across the board with long-term 30-year bond yields touched four-month high as a rebound in Chinese inflation data eased concerns about sluggish growth from the world's second largest economy amid solid U.S. retail sales and inflation data.
Lastly, investors will also remain keen to focus on the trade balance and PPI data.
Meanwhile, The Korea Composite Stock Price Index (KOSPI) ended 0.24 percent higher at 2,027.61 points.
