South Korea 10-Year Bond Yield Breaks 4% First Since 2023

South Korea's 10-year bond yield climbed above 4% for the first time since late 2023, driven by oil price shocks from Iran conflict tensions. Traders are increasing bets on larger interest rate hikes from the Bank of Korea. The yield surge signals potential Korean won strength as higher rates attract foreign capital. USD/KRW could face downward pressure if the central bank delivers aggressive tightening, while regional Asian currencies may also react to spillover effects.