SEOUL: South Korean bonds fell on Monday, with the yield on the benchmark 10-year government debt rising to its highest level in nearly 15 months as speculation that the US Federal Reserve will start unwinding its stimulus next month weighed on sentiment.

The yield on the benchmark 10-year government bond rose seven basis points to 3.74 percent, the highest closing level since 3.74 percent in May 29, 2012.

Lead September futures on three-year treasury bonds ended down 0.06 point at 105.44.