South Korea’s three-year bond yield retreated from a five-month high and the won was steady as investors waited for clues on when the U.S. will start to trim stimulus that has inflated emerging-market asset prices.
South Korea’s bonds fell, pushing the three-year yield to the highest level since June, as data showing the economy is improving increased demand for riskier assets. The won climbed for the second day.
South Korea’s won is set to advance for the fifth straight month, the longest rally since 2007, on optimism the nation will attract foreign funds as the economy heads for the fastest growth since 2010. Government bonds fell.