Home » 10-year Treasury futures rose over 70 ticks… WGBI Observation Countries, Dollar Weakness (Complementary)

10-year Treasury futures rose over 70 ticks… WGBI Observation Countries, Dollar Weakness (Complementary)

by archyde

(Seoul = Yonhap Infomax) Reporter Kim Yong-gap = KTB futures started rising. 10-year futures rose by more than one big at one point during the day.

Last night, the dollar weakened despite a rise in US interest rates, and the market strengthened due to the effect of Korea being classified as a target country for the World Government Bond Index (WGBI). Foreigners supported the strength by buying 3-year Treasury futures.

According to the bond market on the 30th, 3-year government bond futures (KTB) traded at 101.80 as of 9:29 am, up 28 ticks from the previous trading day. Foreigners net bought 2,691 contracts and Toshin Corp. net sold 1,77 contracts.

10-Year Treasury Futures (LKTB) fell 85 ticks to 106.75. Securities net bought 1,242 contracts and foreigners net sold 912 contracts.

Last night, the yield on the two-year U.S. Treasury note rose 7.79 basis points to 4.2171%, and the 10-year bond yield rose by 5.14 basis points to 3.7876%.

According to the U.S. Department of Labor, the number of new unemployment insurance claims for the week ending on the 24th was 193,000, down 16,000 from the previous week on a seasonally adjusted basis.

This is the lowest level since recording 180,000 units on a weekly basis in April.
As labor demand remains strong, the prospect of prolonged austerity by the US Federal Reserve has been re-emerged.

U.S. gross domestic product (GDP) for the second quarter decreased by 0.6% year-over-year.

Key figures from the Fed have reiterated their willingness to raise rates.

Cleveland Fed President Loretta Mester said he would be concerned about economic growth at some point, but for now the priority is to bring inflation down to target levels.

He also emphasized that it is necessary to confirm that monetary policy is sufficiently curbing economic activity.

Louis Fed President James Bullard said he expects significant further rate hikes by the end of the year. He noted that UK financial market turmoil will not stop the tightening moves.

Korea was classified as a watch list in the World Government Bond Index (WGBI).

Financial Times Stock Exchange Russell (FTSE Russell) classified Korea as a country to be observed with the possibility of an upward revision of market access (Level 1 → Level 2).

FTSE Russell classifies market accessibility by country into levels 0 to 2 in the bond market country classification, and only level 2 countries can be included in the WGBI. Korea is currently level 1.

During the morning of the same day, the Ministry of Strategy and Finance will carry out a 2 trillion won buyback of government bonds.

KTB futures moved higher than their opening price after starting higher on the day.

“The dollar index is falling,” said a brokerage manager at a securities firm.

He explained, “We can expect a buyback from the Ministry of Economy and Finance in the morning,” he said.
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This article was served at 09:33, two hours earlier on the Infomax financial information terminal.

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