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KOREA RATES

South Korean MOF to sell KRW 2.9tn of 10-year bonds, issue KTB 02000-3106, results due after 0330BST/1030HKT.

  • The MOF last sold 10-year debt on May 17, the sale drew an average yield of 2.155% and was covered 2.89x.
  • Comments from BoK Governor Lee on Friday led markets to believe that the bank could be considering an interest rate hike and saw yields rise. 10-year yield now around 4.5bps below its 2021 high. Lee said "the current accommodative monetary policy should start to be normalized at an appropriate timing in an orderly fashion if the economy is forecast to continue its solid recovery."

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