Bonds Bid On Lingering Budget Relief

Futures in South Korea are higher, 10-year futures are 15 ticks higher at 127.70. The space is still supported by the announcement of extra issuance that is smaller than expected. The reaction has been fairly muted, since mid-January 10-year futures have fallen from highs around 130.50 to touch lows of 127.61.

• Markets await the weekly briefing from the finance ministry at 0530GMT/0130KST with participants on the lookout regarding the KRW 9.9tn of extra issuance to finance the budget.
• New virus cases have risen in South Korea. In the past 24 hours 444 new cases were recorded, from 344 yesterday. The country launched a mass vaccination campaign last Friday starting with the vaccine developed by AstraZeneca and extended the current social distancing rules for another two weeks through March 14; 87,428 people have been vaccinated so far.
• The PM has instructed officials to review the current policy of withholding the AstraZeneca vaccine for people aged 65 and over. The PM cited France's recent authorisation of the AstraZeneca vaccine for people aged between 65 and 74, and Germany's ongoing review of the vaccine's use for individuals aged 65 and over as rationale for the review.
• Markets will also have one eye on GDP data on Thursday, due at 2300GMT/0700KST. Data earlier this week showed South Korea's exports rose for a fourth month in February, rising 9.5% Y/Y.