South Korea’s 10-year government bond yield fell to around 4.25% in mid-October, its lowest in six weeks, as bonds rebounded following government measures to curb volatility. Authorities warned of intervention and cut planned government bond sales for October by 5 trillion won ($3.74 billion) to contain rising yields. Nevertheless, upward pressure on yields persists amid inflation concerns fueled by elevated oil prices and a broader global bond selloff, while stronger-than-expected economic growth driven by the semiconductor boom adds to price pressures. Won swaps are pricing in about a 70% chance of cumulative 50 bps in Bank of Korea rate hikes over the next six months, following back-to-back increases that lifted the policy rate to 3%. Markets are focused on the October 22 policy meeting, where the central bank may hold rates before potentially resuming tightening in November.