South Korean policymakers plan to meet on Monday to discuss steps to stabilise the wobbly local bond market, Yonhap news agency said on Sunday. Domestic government bond prices plunged on Friday, hit by worries about rising debt supply. The benchmark three-year treasury bond yield shot up 21 basis points to close at 3.94 percent, the highest close since it hit 4.04 percent on August 11 last year.
In the wake of the price slide, a central bank official said measures to support the market, including outright purchases of treasury bonds, would be taken if necessary.