Korean 10 year bond futures have........>

KOREA RATES: Korean 10 year bond futures have reopened after the three day break

to consolidate their gains above down trendline resistance turned support from

the the Jan 4 highs to keep the bull flag breakout in play. 

- Interest rate swaps are flat to a tough lower amid some slight bull

flattening. Korean rate markets have been fairly immune from the large swings

seen in US rates over recent weeks, as well as the uptick in breakevens seen

before the break as expectations are for the BOK to stay on hold for an extended

period. 

- The resumption of Kospi gains has seen the equity-rate market divergence widen

suggesting that rate markets face some upside pressure from the recovery in

domestic risk appetite. 

- Also worth noting that Korea's 10 year CDS is trading at just 52bps, falling

to new multi year lows amid the ongoing improvement in the country's external

outlook which should keep inflation pressure muted.