10-year Treasury futures rose over 70 ticks… WGBI Observer Countries, Dollar Weakness (Supplementary)

(Seoul = Yonhap Infomax) Reporter Kim Yong-gap = KTB’s future began to rise. 10-year futures rose more than a major at one point during the day.

Last night, the dollar weakened despite an increase in US interest rates, and the market strengthened due to the impact of the classification of Korea as a target country for the World Government Bond Index (WGBI). Foreigners supported the strength by buying 3-year Treasury futures.

According to the bond market on the 30th, 3-year government bond futures (KTB) were trading at 101.80 at 9:29 am, up 28 ticks from the previous trading day. Net foreigners bought 2,691 contracts and Toshin Corp sold. net 1,77 contracts.

10-Year Treasury Futures (LKTB) fell 85 ticks to 106.75. Net Securities bought 1,242 contracts and net foreigners sold 912 contracts.

Last night, the yield on the two-year US Treasury note rose 7.79 basis points to 4.2171%, and the 10-year bond yield rose 5.14 basis points to 3.7876%.

According to the US Department of Labor, the number of new unemployment insurance claims for the week ending on the 24th was 193,000, down 16,000 from the previous week on a seasonally adjusted basis.

This is the lowest level since recording 180,000 units weekly in April.
As labor demand remains strong, the possibility of prolonged tightening by the US Federal Reserve has re-emerged.

US gross domestic product (GDP) for the second quarter fell 0.6% year over year.

Key figures from the Fed have reiterated their willingness to raise rates.

Cleveland Fed President Loretta Mester said she would worry about economic growth at some point, but for now the priority is to bring inflation down to target levels.

He also emphasized the need to confirm that monetary policy curbs economic activity sufficiently.

Louis Fed President James Bullard said he expected a further significant rate increase by the end of the year. He said the UK financial market turmoil would not stop the austerity movement.

Korea has been classified as a watch list in the World Government Bond Index (WGBI).

The Financial Times Russell Stock Exchange (FTSE Russell) classified Korea as a country to watch with the possibility of an upward revision of market access (Level 1 → Level 2).

FTSE Russell classifies market accessibility by country into levels 0 to 2 in the bond market country classification, and only level 2 countries can be included in the WGBI. Korea is currently level 1.

During the morning of the same day, the Ministry of Strategy and Finance buys back government bonds of 2 trillion.

KTB futures moved higher than their opening price after starting the day higher.

“The dollar index is falling,” said a brokerage manager at a securities firm.

He explained, “We can expect a buyback from the Ministry of Economy and Finance in the morning,” he said.
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This article was submitted at 09:33, two hours earlier on the Infomax financial information terminal.

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