Korean rates are seeing some further....>

KOREA RATES: Korean rates are seeing some further upside pressure following on

from last week's moves. The 2-year swap has added another 0.75bp following last

week's break above the 1.80% level as the outlook turns increasingly bullish.

The 10-year is up 1.2bp triggering an inverse head and shoulders bottoming

pattern that points to a move back towards 2.0%.

- The curve looks set to normalize after recent flattening as firming inflation

expectations and risk appetite put upside pressure on the long end of the curve.

The government's increasingly loose fiscal outlook also points to long end

upside pressure. 

- GDP data is out tomorrow ahead of Thursday's rate meeting where the BOK is

widely expected to strike a neutral tone.