South korea: South Korea's bond market sentiment improved for May amid expectations that inflationary pressures will ease and the Korean won will strengthen against the U.S. dollar, a poll showed Wednesday. The Korea Financial Investment Association reported that its bond market survey index (BMSI) rose to 96.3 for next month, sharply up from 90.8 for April.

According to Yonhap News Agency, a BMSI reading above 100 indicates that more experts expect bond market conditions to improve. The survey was conducted among 100 bond traders and fund managers in South Korea. On the policy rate outlook, 93 percent of respondents anticipated that the Bank of Korea (BOK) would maintain the country's benchmark rate this week. The central bank is scheduled to hold its latest rate-setting meeting on Friday.

Notably, 6 percent of those surveyed expected the BOK to raise the key rate due to ongoing uncertainties from the conflict between the United States and Iran. This is a shift from the previous survey, where no respondents anticipated a rate hike by the central bank.

The BMSI for interest rates rose to 102 for May from April's 99, suggesting that bond experts expect borrowing costs to decrease next month. This expectation is partly attributed to the growing anticipation of more foreign capital inflows following South Korea's recent inclusion into the World Government Bond Index (WGBI), as stated by the association.

The index for exchange rates surged to 95 from 80, highlighting experts' expectations for the South Korean currency to appreciate against the U.S. dollar, according to the survey.