Korean 10-year bond futures are off.....>

KOREA RATES: Korean 10-year bond futures are off their daily highs but still up

15 ticks on the day trading at two-week highs of 125.01. The market is trading

in line with the US but the bullish trend is much more entrenched, with the

underperformance of Korean stocks providing support. 

- Swap markets are edging lower as the drop in equities, both domestically and

overseas, is reducing the likelihood that the BOK will resume interest rate

hikes, with the final meeting of the year to be held at the end of Nov. The BOK

has held a meeting today to discuss the impact of the recent drop in US stocks. 

- 2-year swaps trade at 1.8650%, down 0.5bps today, while the curve continues to

edge gradually lower. The 2s-10s swap spread is now at two-year lows of just

17.5bps.