USDKRW has regained some of its early.........>

KOREA: USDKRW has regained some of its early losses in line with the broader

trends in the dollar, but remains 0.3% down on the day amid a recovery in risk

appetite that was spurred by positive Chinese credit data and promising

headlines on the trade war front. While implied volatility has seen a rare jump

on the day, there remains a large gap between USDKRW and implied vol which is

short term bullish for the won.

- Bond futures have had a rough day, dropping 33 ticks responding negatively to

risk on pressures despite a quiet day in US and Chinese bond futures. The key

21-dma support level comes back into focus. Interest rate swaps are seeing

renewed upside after failing to break lower on Friday, with the 10 year up 3bps

amid some slight steepening. 

- On the headline front President Moon Jae-in says he expects a "big" advance in

denuclearization talks during the next summit between leaders of U.S. and North

Korea. In other news BBG noted that Korean officials are due to reach out to US

officials tomorrow to hopefully avoid the imposition of car tariffs.