South Korean Bonds Fall as Interest Rates Will Rise; Won Little Changed

(Bloomberg) -- South Korea's government bonds dropped
on speculation the central bank will raise interest rates next
week to prevent surplus cash in the banking system from spurring
inflation. The won was little changed.

Five-year bonds fell for a fifth day as Finance Minister
Kwon Okyu said monetary policy should be aimed at ``controlling
liquidity'' because consumer prices may rise. Exports increased
to a record in June while the nation's current account balance
was in surplus for the first time in three months in May.


Read more at Bloomberg Currencies News