Richer Again, South Korean Officials In Japan To Discuss FX Reforms

Asian Government Bonds are richer across markets.

• In a light data session, China government bonds have slightly richened following yesterday’s sell-off, which was driven by an official warning to bond bulls via state media reports.
• South Korean sovereign bond curve has also shifted richer with South Korean officials from the BoK and finance ministry visiting Tokyo for two days of meetings. They are meeting Japan’s FX committee members and major investors, aiming to introduce ongoing FX reforms (per BBG).
• Korea’s onshore currency will trade until 2 a.m. Seoul time starting July 1, extending from the current 9 a.m. - 3:30 p.m. window to improve market access and stability.
• Local authorities’ determination to extend trading hours for the onshore won is part of their bid for local bonds to join a global government bond index. · Looking ahead, May PPI is due out on Friday.