Wednesday July 1, 08:33 AM
S.Korea treasury bonds jump on stable inflation
SEOUL, July 1 (Reuters) - South Korean government bonds
jumped on Wednesday, recovering from a slide in the previous
session, with foreign investors snapping up futures after stable
inflation data.
Official data showed the nation's
consumer prices in June
rose 2.0 percent from a year earlier, lower than market
expectations and marking the slowest annual pace in 22 months.
The inflation data offset the recent string of upbeat
economic data, including strong export performance in June
released earlier.
'Data suggest inflation would not add much pressure on the
central bank's rate decision for the time-being, but I still
believe a fast economic recovery pace could hasten rate hikes,'
said Park Tae-keun, a fixed-income analyst at Hanwha Securities (003530.KS - news) .
The three-year treasury yield fell 8 basis
points to 4.08 percent and the benchmark five-year yield retreated 8 basis points to 4.56 percent.
The September government bond futures contract ended
30 ticks higher at 109.73, outpacing a 24-tick fall on Tuesday.
close prev close
5-yr treasury bonds 4.56 pct 4.64 pct
3-yr treasury bonds 4.08 pct 4.16 pct
1-yr monetary stabilisation bonds 2.95 pct 2.97 pct
3-mth certificates of deposit 2.41 pct 2.41 pct
Average call rate 1.94 pct 1.90 pct
6-mth *KORIBOR 2.68 pct 2.68 pct
~ not quoted
(Reporting by Seo Eun-kyung; Editing by Ken Wills)
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