Futures Higher Alongside Regional Peers, UST's

Futures are higher, 10-year future up 13 ticks at 126.87, retracing some of the decline yesterday.

• While foreign inflows into South Korean bonds continue the pace has slowed as the week has progressed. Yesterday saw inflows of $106.72m, down around $189m form the day before and some $350bn lower than Monday.
• South Korea reported 735 new virus cases for the second straight day on Thursday amid lingering woes over another wave of the pandemic as the country's vaccination campaign gathers pace, with vaccinations set to top 2 million. The figure was the highest since Jan. 7 when the country reported 869 cases. It was also the second straight day that the daily caseload hovered above 700 following 731 cases on Wednesday. The daily tally stayed in the 500s on Monday and Tuesday. Despite the steady upticks, South Korea decided to maintain the current level of social distancing rules through May 2 to contain the virus, although it placed more restrictions on entertainment establishments, such as nightclubs and bars.
• In a sign tensions could flare again, a report from the Congressional Research Service (CRS) noted that North Korea appears to be working to develop capabilities that can oppose US missile defence systems deployed in its region. The report comes after North Korea two ballistic missile tests last month, the first such tests in a year.