South Korean bond yields rose on Friday as signs of a resolution to Greece's debt crisis and stronger stock markets stoked expectations for a further rise in debt yields, while trade remained in tight range ahead of month-end economic data. International lenders approved Greece's austerity plan intended to avoid a debt default, reviving interest in riskier assets.
The yield on three-year treasury bonds rose 3 basis points to close at 3.71 percent, its highest in more than six weeks. It has gained 19 bps since June 7. Front-end notes also came under pressure ahead of month-end redemption of money market funds, and interest rate swap rates also advanced by 1-3 bps.
The won ended local trade at 1,078.8 per dollar, compared with Thursday's domestic close of 1,076.9.
Month-end dollar offers from exporters limited dollar/won movements, after Samsung Heavy Industries Co Ltd won a $600 million drillship order from a Greek shipper. Unlisted Hyundai Samho Heavy Industries secured a $1.3 billion order from Singapore to build 10 container ships.