Seoul: South Korean bond market sentiment slightly improved for July after the United States and Iran agreed on a deal to end the war in the Middle East, a poll showed Wednesday. The Korea Financial Investment Association said its bond market survey index (BMSI) stood at 85.1 for the coming month, up 4.1 percentage points from June.

According to Yonhap News Agency, the July figure remains below the threshold for optimism. A BMSI reading above 100 indicates that more experts expect bond market conditions to improve. The association's monthly survey was conducted with the participation of 100 bond experts.

The slight rise in sentiment was attributed to easing tensions in the Middle East as the U.S. and Iran were set to formally sign an interim peace agreement later this week. This geopolitical development is seen as a positive sign for market stability.

The BMSI for interest rates increased to 71 for July, marking a 4 percentage point rise from June. This suggests that experts are slightly more optimistic about interest rate conditions in the near term.

However, the index for exchange rates fell to 91 from 98, reflecting expectations of a weaker South Korean currency against the U.S. dollar. This decline indicates concerns about the currency's performance in the face of global economic uncertainties.