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Pressure On Fixed Income Globally

KOREA RATES

Risk on tone has weighed on the South Korean fixed income space today, 10-year futures down around 36 ticks at 129.04, the contract touching fresh lows.

  • The uncertainty around additional issuance to finance an additional budget which features cash handouts also continues to weigh.
  • This concern was evident at the 3-year auction. The yield offered a small yield concession but saw a smaller coverage ratio and less aggressive bids.

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