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Pullback Considered Corrective


Holding Above Recent Lows


BLOCK, Large 3Y Midcurve Put Condor

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Futures dropping into negative territory after giving back opening gains, even as risk assets in South Korea come under pressure with equity markets lower and the won gapping lower at the open. 3-year futures down 8 ticks at 110.25, 10-year future down 1 tick at 128.15.

  • Data earlier showed consumer sentiment dropped in July over a recent spike in COVID-19 infections, marking the first decline since December last year. Consumer confidence came in at 103.2 for July, down 7.1 points from the previous month. The subindex for current economic conditions stood at 82 in July, down from 94 in June, while the future economic conditions index reached 92 this month, down from 109 in June.
  • Meanwhile after hovering around 1,300 earlier this week coronavirus cases hit a fresh record high of 1,896 in the past 24 hours- authorities did warn yesterday that case numbers in the current wave had not yet peaked.
  • The latest wave of the virus has not impacted growth expectations too negatively though. The IMF sharply raised its 2021 growth outlook for South Korea to 4.3% as the economy is on a solid recovery track amid robust exports. It follows a slight miss in GDP data earlier this week, though the BoK reassured markets that the economy was still on track to grow 4% this year, the BoK's forecast.