Hong Cognisant Of Inflation & Financial Imbalance Risks

Futures lower in South Korea; 3-Year contract down 7 ticks while the 10-Year down 39 ticks. Sentiment in the Asia-Pac region is mixed, but South Korean assets are seeing risk on trade. Finance Minister Hong spoke earlier and said that global inflation was a growing concern and that household debt needs to be curbed as it is a risk to the economy. Ahead of a meeting with BoK Governor Lee, Hong said he would discuss pre-emptive market stabilisation steps and would discuss financial imbalance issues. Data earlier showed industrial output fell 0.7% M/M against a rise of 0.3% expected the print means that industrial output, retail sales and investment declined in August, the first time since May that all the metrics declined together.