MNI: It has been a risk on session for Korean........>

MNI: It has been a risk on session for Korean markets with the Kospi adding

another 1% to close the gap left on Oct 11. 10 year bond futures are also off 17

ticks, breaking below trend channel support to shift the outlook bearish, while

swap rates have edged 1+bps higher on the day. 

- The risk on moves come despite large weakness in the BOK's manufacturing and

non manufacturing business surveys as well as continued contractions in discount

and department store sales. 

- Despite the positive backdrop of a stronger Kospi and narrower US-Korea yield

spread USDKRW trades flat, failing to break below recent range lows. 1 month

implied vol has has failed to break below the key 7.0 level in recent days,

potentially providing a warning signal against further won strength.