Futures At Session Lows

Futures in South Korea are higher, but have declined through the session after gapping higher at the open. 10-Year future last up 6 ticks at 125.96, compared to session highs at 126.41.

• Data earlier saw confidence in South Korean manufacturers rise to 91, the highest since 2011. Encouragingly, exporters and domestic focused firms both saw confidence increase and shows optimism around the economic recovery. The subcomponents for expectations, new orders and operation rates all saw improvements. Confidence also increased among non-manufacturing firms, rising to 78 in April from 73 previously. Also released was industrial production data, the February Y/Y figure saw a 0.9% rise, against expectations of a 1.0% increase, down from 7.8% last month.
• Elsewhere, South Korean Trade Minister Yoo held a virtual meeting with Ngozi Okonjo-Iweala, the new head of the WTO late yesterday and is said to have voiced support for free trade amid the new coronavirus pandemic.
• On the coronavirus front South Korea reported 506 daily new coronavirus cases in the past 24 hours, above 400 for a second day on Wednesday as a string of cluster infections continued to emerge at various facilities and workplaces nationwide.
• A recent report from NH Investment & Securities expects corporate bonds to rebound in April alongside a stabilisation in sovereign yields. The report notes better corporate earnings and prevailing risk on sentiment as being drivers of tighter spreads. The report also noted sales of bank bonds are expected to increase from Q3 on the expectation that looser liquidity coverage ratios will not be extended at the end of September.