Close Change USD/KRW 1,154.30 -10.50 JPY/KRW 14.8693 -0.1740 3-Year Treasurys 3.44% +3 bps 5-Year Treasurys 3.55% +2 bps 10-Year Treasurys 3.81% +1 bp 20-Year Treasurys 4.01% -1 bp SEOUL (Dow Jones)--The South Korean won was up against the U.S. dollar late Monday, recovering from six straight days of losses, on reports of an International Monetary Fund loan boost for Italy, and a robust 2.2% gain in the local stock index. Positive sentiment in early Asian trade dissipated after people familiar with international discussions on the euro-zone debt crisis told Dow Jones Newswires that the report on IMF's aid package for Italy was "not credible." The euro gave up much of its earlier gains against the dollar by midday, and this led the won to come off its intraday high as well, traders said. After the close of Asian trade, the IMF confirmed that it was not in talks with Italy to prepare a major bailout for the Group of Seven nation. The dollar moved between KRW1,151.30 and KRW1,160.00 on Monday. Samsung Futures currency analyst Jeon Seung-ji said that the currency market is likely to remain volatile this week. Investors are eyeing a two-day euro-zone finance ministers' meeting, and bond auctions in a number of euro-zone member countries, including Italy, she said. She tipped the dollar to trade between KRW1,145 and KRW1,170 for the week. Korean government bonds were mostly lower as a surge in U.S. retail spending over the Thanksgiving Day holiday helped support local shares and weighed on safe-haven bonds. Analysts said, however, local bond yields are likely to stay rangebound as investors stay cautious ahead of the release of South Korea's monthly economic data. The October industrial output and November consumer price index are due out later this week. "The output figures, due Wednesday, are largely expected to have slowed a bit in October amid heightened external economic uncertainties. They will likely give bond prices firm support," said Moon Hong-cheol, a fixed-income analyst at Dongbu Securities. The median forecast from a Dow Jones Newswires poll of seven economists is for output to rise by 5.4% from a year earlier, down from a 6.8% growth recorded in September. Dongbu's Moon said the three-year bond yield is expected to move in a 3.35%-3.45% band this week. December bond futures ended eight ticks lower at 104.30. -By Jieun Shin, Dow Jones Newswires; 822-3700-1905; jieun.shin@dowjones.com

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