3-Year Treasury Futures Extend Losses as Foreign Investors Offload 17,000 Contracts

(Seoul=Yonhap Infomax) Hyun Woo Roh – South Korean Treasury futures declined further in mid-afternoon trading on the 20th, with losses concentrated in short- to mid-term maturities.

The sell-off was driven by a significant increase in net selling of 3-year Treasury futures by foreign investors.

According to the Seoul bond market, as of 13:24 KST, the 3-year Treasury futures contract was down 7 ticks from the previous session at 105.84.

Foreign investors recorded a net sale of approximately 17,000 contracts, while financial investment firms net bought about 13,000 contracts.

The 10-year Treasury futures contract fell 11 ticks to 114.12. Foreign investors sold around 2,900 contracts, while banks purchased about 1,100 contracts.

“After lunchtime, the market dropped sharply before partially recovering,” said a bond dealer at a major commercial bank. “There were no specific catalysts, but the scale of foreign selling appears to have widened the losses.”

hwroh3@yna.co.kr

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