Bank of Korea raises interest rates

South Korea’s central bank raised its policy interest rate by 25 basis points on Friday, as expected, but bond yields plunged in response to comments suggesting its 1-1/2-year rate-hike campaign had ended. The benchmark 10-year treasury bond yield dived as much as 14.3 basis points to 3.270%, its lowest since late August and far below the Bank of Korea’s policy rate