South Korea’s 10-year government bond yield fell to around 4.14% in late October, its lowest since June, as foreign buying of government bond futures lifted bond prices. Concerns over mounting debt at AI infrastructure firms further boosted safe-haven demand for government bonds, while falling US Treasury yields put additional downward pressure on Korean yields. On the monetary policy front, the Bank of Korea held its policy rate at 3% on October 22, pausing after back-to-back 25 bps hikes in July and August aimed at containing inflation and addressing financial stability risks, including rising housing prices and household debt. Governor Shin Hyun Song recently signaled a gradual, data-dependent approach to further tightening but pledged to maintain restrictive policy until inflation converges toward its 2% target. Against this backdrop, persistent inflationary pressures and strong semiconductor-led growth have kept market expectations of another rate hike in November alive.