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Futures Higher But Off Best Levels

KOREA RATES

Futures are higher in South Korea, 10-year last up 13 ticks at 125.84, but off highs at 126.04. Risk sentiment is mixed in Asia and South Korean equity markets are struggling to make gains. There is some concern over elevated coronavirus figures, with loosening of lockdown measures facing further delays. Markets have looked through inflation figures which were above the BoK's target again. The pace of gains in consumer prices did slow though which supports comments made by the Central Bank that inflation would overshoot in the short term and then pull back with the Bank now forecasting 1.8% for the year.

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