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(Seoul=Yonhap Infomax) Hye Rim Pi – South Korean government bond futures edged higher in early trading on the 24th, tracking overnight declines in US Treasury yields.
The Seoul bond market opened on a firm note, buoyed by the drop in US Treasury yields during the previous session. However, gains in the short end remain capped as investors adopt a cautious stance ahead of this week’s Monetary Policy Board meeting at the Bank of Korea (BOK).
According to the Seoul bond market, as of 09:11 AM KST, the three-year government bond futures contract was up 7 ticks at 105.88. Foreign investors were net buyers of 307 contracts, while banks sold a net 200 contracts.
The 10-year government bond futures rose 35 ticks to 114.53. Foreign investors purchased a net 1,294 contracts, while securities firms sold 990 contracts.
“It appears the market opened with a bull-flattening bias, following the overnight move in US yields,” said a bond dealer at a securities firm. “The previous session’s weakness also seems to have played a role.”
The dealer added, “Short-term yields are facing resistance ahead of the Monetary Policy Board meeting. With limited trading activity before the meeting, the market is likely to remain in wait-and-see mode, closely tracking foreign investor flows.”
On the previous trading day, the US 2-year Treasury yield fell 1.1 basis points to 3.4990%, while the 10-year yield declined 3.8 basis points to 4.0270%.
phl@yna.co.kr
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