Futures Under Pressure

Futures lower in South Korea, 3-Year down 3 ticks at 110.36, 10-Year down 30 ticks at 127.37. The move in the 10-Year takes it below its 50-DMA at 127.45 for the first time since June 29. Equity markets under some pressure, down around 0.1% even amid a general risk on tone in the region.

• Short-end US/SK spreads have widened, the 2-Year spread at 134.83bps after a weak US NFP number cast doubts on taper timing from the FOMC.
• Markets continue to digest comments from Bank of Korea Governor Lee Ju-yeol and Koh Seung-beom, chairman of the Financial Services Commission, on Friday. The said they would work closely to reduce financial imbalances and ensure stable growth of the economy, noting that problems created by mounting household debt and rapid cash flows into asset markets risked hurting economic growth.
• Markets look ahead to comments from FinMin Hong who will attend a parliamentary session today to review 2020 fiscal-year govt spending, while trade balance data is due tomorrow.