S. Korean bonds close lower after industrial production rises for second straight month

The South Korean government bonds closed lower Friday after data showed that the industrial production rose for second consecutive month in June.

The 10-year bonds yield, which moves inversely to its price, rose 3 basis points to 1.388 percent, short-term 3-year bonds yield jumped 1-1/2 basis points to 1.220 percent and the super-long 20-year bonds yield bounced nearly 3 basis points to 1.462 percent.

South Korea’ Industrial output increased 0.8 percent y/y for the second straight month in June, higher than the market consensus of 0.5 percent y/y, from 4.3 percent in May. Production in the service sector jumped 5.4 percent from a year earlier, with a 1 percent on-month gain.

For all industries, output jumped 4.8 percent on-year in June and climbed 0.6 percent from a month earlier, reported The Korean Times.

Similarly, South Korea's Services output growth increased to 5.4 percent y/y in June from 3.6 percent y/y in May and sale of consumption goods jumped 8.9 percent y/y in June after 5.3 percent y/y in May. Also, the country’s retail sales climbed 1 percent m/m, as compared to previous 0.6 percent.

Meanwhile, The Korea Composite Stock Price Index (KOSPI) closed down 0.24 percent or 4.91 points at 2,016.19.