South Korea bond yields hit four-week low as global rates fall, inflation cools

South Korea's 10-year government bond yield fell to around 4.15% in early August, a four-week low, as it tracked a decline in global bond yields and softer oil prices. The move came after Qatar said mediation efforts to end the U.S.-Iran conflict had made progress, although details were limited, easing inflation concerns through a drop in crude prices. At home, the Bank of Korea's latest July meeting minutes showed policymakers would carefully assess the timing and pace of further tightening, with some members favoring preemptive action to contain inflation risks. The seven-member board unanimously raised the policy rate by 25 basis points last month, its first hike in three and a half years, and signaled that more increases could follow if stronger growth and persistent price pressures continue. That outlook was tempered by softer inflation data. Headline annual inflation slowed to a three-month low of 2.8% in July, down from 3.2% in June and below expectations for 3%, reinforcing the view that price pressures may be easing even as the central bank keeps policy tightening on the table.