South Korea's longer-dated treasury bonds reversed early falls to eke out a small gain by the close Thursday, helped by foreign buying for a third consecutive session. The debt market opened weaker, pressured by the central bank chief's remarks on interest rates and US Treasuries' fall on strong data and an upbeat economic outlook, which pulled the won currency off a near four-week high touched on Wednesday.
The central bank next reviews rates on March 11, the last policy meeting for Lee, whose successor is to be appointed by growth-oriented President Lee Myung-bak. The benchmark 5-year yield fell 1 basis point to 4.72 percent, while the three-year treasury bond yield closed flat at 4.10 percent, staying at an 11-week low. The March treasury futures contract ended 5 ticks higher at 110.45, after falling as much as 15 ticks earlier.