Futures Track UST's Lower

Futures lower in South Korea, tracking a move lower in US tsys seen on Monday. 3-Year future is down 6 ticks at 109.45, 10-Year future is down 32 ticks at 124.59. The move lower in futures comes despite a broad risk off tone with the KOSPI down around 0.75%. Markets are ignoring a rise in consumer confidence data earlier in the session. The US/SK has narrowed to 106.22bps, down from 134bps hit in early September.

• Elsewhere markets continue to digest comments from FSC chairman Koh yesterday that there will be additional measures next month to curb household debts. Koh said that household debt was the biggest potential risk to South Korea's economy. In its financial stability report the BoK said debt-to-disposable income was at 172.4% in the second quarter, up 10.1ppts from a year earlier, and said there were concerns that the debt pile could become unsustainable as rates rise but also noted that another 25bps hike should only have a limited interest repayment impact on both households and businesses. The BoK meets on October 12.