Finance Ministry Monitoring Yields

South Korean Vice Finance Minister Kim Yongbeom making some comments on bond markets, says the increase long-term government bond yields and a widening maturity spread are noteworthy and something the finance ministry will keep an eye on with a view to stabilising the financial sector.

• Kim notes that supply dynamics are one of the reasons behind the rise in bond yields, as well as increases in US yields.
• 10-Year bond future closed higher yesterday, gaining around 25 ticks to close at 130.02. US futures are currently up around 1+ ticks at the reopen, after the contract meandered along in very limited, holiday-shortened, liquidity-thinned Monday trade, finishing the session little changed after ticking away from Asia/early Europe highs, with the modest uptick in German yields filtering through.