Futures On Track For Third Day Of Declines

Futures are lower, on track for a third session of declines. 3-Year contract is down 4 ticks at 110.27 while the 10-Year contract is down 20 ticks at 128.02, equity markets in South Korea are slightly lower on the day. The cash space has twist flattened.

• On the coronavirus front there were 1,704 new cases in the past 24 hours, in the 1,700s for a third day. It was reported earlier that South Korea will extend its tough social distancing restrictions for two more weeks through Aug. 22.
• Data earlier showed a current account surplus for the fourteenth straight month, though the surplus did narrow slightly to $8.874bn. The June surplus came as exports remained robust and dividend income from Korean firms' overseas units increased.
• Markets continue to digest the news that the BoK's most pronounced hawk would step down to join the FSC. Consensus seems to be that even though Koh was only one who voted for a 25bps hike at the July meeting, the other MPC members seem to be similarly hawkish. No successor has been named so the BoK will hold its August meeting with six members.