Korean 10-Year Yield Rises Most in Three Weeks on Global Selloff

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South Korea’s government bonds fell, pushing the 10-year yield up the most in three weeks, as a selloff in global debt markets coincided with speculation the Asian notes rose too much last week.

The yield on the securities due September 2024 climbed 10 basis points, the most since May 12, to close at 2.42 percent in Seoul, Korea Exchange prices show. The yield fell 18 basis points last week, the biggest drop since January. The three-year yield climbed four basis points to 1.76 percent.

Treasuries declined the most in two weeks with a European bond-market selloff intensifying as leaders try to prevent Greece from defaulting and stronger U.S. economic data add to speculation the Federal Reserve will raise interest rates this year. The Bank of Korea Tuesday released minutes of its May meeting, when the benchmark rate was held at a record low 1.75 percent, showing one of seven voting members called for a cut.

“Some players were thinking the yields were too low, and buying sentiment was hurt after overseas yields rose sharply overnight,” said Seo Hyang Mi, a Seoul-based fixed-income strategist at HI Investment & Securities Co. “While expectations for the central bank to cut rates are still there, it’s time for adjustment as there’s no fresh news.”

The BOK next meets on June 11. Exports dropped the most in almost six years in May and a manufacturing gauge was the lowest since August 2013, according to data released Monday. A report Wednesday showed the nation’s foreign-exchange reserves rose for a fourth month in May, to a record $371.5 billion.

The won strengthened 0.7 percent, the most since May 14, to 1,104.60 a dollar, according to prices compiled by Bloomberg. The currency fell 1.6 percent last week, the most since mid-March.