Back To Back Hikes Seen As Unlikely

Futures higher in South Korea, 3-Year contract up 4 ticks at 110.49, 10-Year future up 19 ticks at 127.92. The gains follow a rise in US tsys after a less hawkish than expected appearance from FOMC Chair Powell at Jackson Hole on Friday. Futures are still off highs seen post-BOK last week, with markets now assessing the prospect of further hikes in 2021 after initially interpreting the 25bps rate increase with one dissenter as a so-called "dovish hike". There are two meetings left in 2021, chatter seems to be that the presence of one dissenter means back to back hikes are unlikely but the December meeting could be on the table. Markets await the sale of 30-Year bonds today, on Friday the MOF announced it would sell KRW 11tn of bonds in September and would purchase KRW 2tn of bonds from the market. In August the MOF sold KRW 16tn of bonds against plans to sell KRW 12.5tn.