Futures Give Back Monday's Gains

Futures are lower today, giving back most of yesterday's gains after closing at session highs. The move has tracked US tsys lower. Coronavirus cases have dropped from record highs seen last week, though authorities warn the peak could be yet to come and have tightened virus restrictions outside the capital.

• In the cash space yields are lower with some bull steepening evident. Data earlier showed GDP was slightly below estimates, but the lack of anything major to derail rate hike expectations has seen Korean risk assets strengthen. BoK officials were on the wires following the release saying the economy was still on track to hit the 4% growth target and outlook depends on the latest resurgence in COVID-19.
• Spreads with the US have narrowed slightly but remain on a widening trend; 10-year spread last at 61bps while the 2-year spread it last at 108bps from lows of 112bps earlier in July.