Bond Futures Reverse Losses, Despite Hike

Bond futures in South Korea turn positive, reversing early losses seen after the BoK hiked rates. 3-Year future now up 3 ticks at 110.38, 10-Year up 16 ticks at 127.97. In the press conference BoK Governor Lee was cautious and noted that policy remains accommodative. He highlighted that inflation is likely to remain above forecasts for some time and that the Bank needs to think about whether inflation will move beyond its forecast and whether demand-side inflationary pressure will persist. Lee also said that forecasts and future hikes were predicated on economic progress which assumed a drop in infections from October. Lee also gave a nod to the Jackson Hole event this weekend, saying that Fed policy was particularly important for the future.