Futures Bid In Risk Off

Bond futures in South Korea are higher, 10-year future up 13 ticks at 128.85, there is a general cautious tone in Asia and domestic equity markets are under pressure, which has seen the won weaken and catalyse some safe haven flows.

• An uptick on coronavirus cases post-LNY also sparking risk aversion, South Korea reported 621 new coronavirus cases over the last 24 hours, in line with the previous day, and a notable jump from around 350 last week. While the number of confirmed cases show a rising trend since after the LNY a healthy ministry official said it's "hard to judge" whether this is due to a temporary phenomenon on more testing or whether it's a resurgence of the 3rd wave.
• Industrial Bank of Korea, a state backed lender, sold a KRW 1.05tn dual tranche ESG bond. The 1-year tranche drew a 0.81% yield, while the 3-year drew a 1.1% yield.
• Finance Minister Hong also helped engender support for safe assets after his meeting with BoK Governor Lee and Financial Services Commission Chairman Eun. He said South Korea should maintain expansionary fiscal policy, and need to preemptively address risks such as liquidity, prices, housing, debt and financial markets. Hong did say the government needs an assessment of temporary measures put in place during the pandemic.