Bond Futures Higher Despite Risk On

South Korea 10-year future continues to grind higher, despite a more supportive risk environment and a bid in the won.

• KAAH1 last up 25 ticks at 129.50 and challenging yesterday's highs.
• Lee Nak-yon, the leader of South Korea's Democratic Party crossed the wires earlier saying the ruling party will prepare a fourth round of cash handouts and draw up extra budget to provide aid to all citizens as well as supports for small-merchants and others deeply affected by the pandemic.
• The bank purchased KRW 11tn of KTB's in 2020 to ensure stable markets. The bank currently holds around 39.8% of total domestic assets on its balance sheet. It is worth keeping in mind that the government has front loaded the budget for the first half of 2021, which would suggest purchases will also be front loaded, while the timings of the additional budget will be scrutinized for clues of timings of issuance and purchases.