Bonds Drop, Won Weakens As Lee Speaks

Bank of Korea Governor Lee speaking post rate announcement, as expected he is positive on the economy, floating the prospect of mid-3% growth, and noting inflation to be around 2% in Q2. He noted the pace of the recovery depends on the virus and vaccine rollout, and said not expecting the situation to deteriorate from the current levels – 698 new cases were reported in the past 24 hours.

• Lee also touched on the bond market, he noted timing of the bank's bond buying is dependent on market conditions, and that there was no change in the previously announced plan for bond buying. The BoK will adjust liquidity via MSB's and other tools, and will proceed with preparation for 3-Year MSB issuance. Bond markets are indifferent to the comments though, 10-year future at session lows of 126.43, down 45 ticks.