FinMin Reluctant To Propose Extra Debt Sales

Futures are mixed in South Korea, 3-year future up around 8 ticks while the 10-year is flat after recovering from a lower opening; the 10-year contract last at 126.58 off session lows at 126.59. Risk assets in South Korea are under pressure, equity markets down around 0.25%, as the number of coronavirus cases hits a fresh record high and the government imposes stricter lockdown measures outside of the capital. Coronavirus worries overshadow broadly positive data earlier in the session which saw unemployment rates fall and export prices rise for the seventh month.

• Elsewhere FinMin Hong reiterated his opposition to the idea of providing universal COVID-19 relief handouts to all people with another extra budget currently under review at parliament. Hong also said he was reluctant to increase the size of the proposed budget and did not want extra debt sales to finance the endeavour. Earlier this week the head of the ruling LDP and opposition parties were in agreement on the need to provide cash handouts to all people with this year's second extra budget, a proposed KRW 33tn to finance the fifth round of COVID-19 aid packages for people in the bottom 80% income bracket and small merchants hit hard by the pandemic.