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BoK May Increase Purchases

KOREA RATES

10-Year future is up 12 ticks, last at 126.08 compared to yesterday's low of 125.68. The move higher is on the back of reports that the Bank of Korea are considering purchasing government bonds above the KRW 5tn-KRW 7tn previously proposed. The bank will also reportedly reduce the size of the scheduled KRW 2.2tn 2-year auction tomorrow. Yields lower across the curve, with the 10-year yield down 0.5bps after rising sharply yesterday, while the curve has seen some bull steepening.

  • Elsewhere, South Korea reported 382 daily new infections, in the 300s for the second day, as health authorities plan to unveil another set of restrictions in the greater Seoul area to sharply flatten the virus curve. South Korean President Moon Jae-in and first lady will get AstraZeneca vaccine on March 23, in plenty of time to attend G-7 summit in June. Over 602,000 people in South Korea have now had the vaccine.

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