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Korea Three-Year Bond Yield Falls to Record Low as Rate Cut Seen

South Korea’s bonds gained, pushing the three-year yield to a record low, as inflation came in below estimates and minutes of the last central bank meeting showed support for another cut in the policy rate.

The yield on the 2.75 percent notes due June 2017 declined seven basis points, or 0.07 percentage point, to 2.23 percent at the close in Seoul, Korea Exchange prices show. That was the lowest level for a benchmark of that maturity since Bloomberg began compiling the data in 2000, and followed a 21 basis point drop in September. The yield on the five-year debt fell seven basis points to 2.43 percent.