Korean bonds stay strong, despite rising tensions

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Bond yields in Korea have remained relatively stable despite escalating tensions between North and South.

South Korea has accused the North of sinking one of its warships, the Cheonan, on March 26, killing 46 sailors. A report from South Korea’s Ministry of Defence, published on May 20, concluded the ship was sunk by a North Korean torpedo.

On May 25, a spokesman for the Ministry of Unification announced a series of reprisals against North Korea for the alleged attack, including a suspension of

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