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S.Korea T-bonds surge on hopes for c.bank support
Reuters - 1 hour 43 minutes ago
SEOUL, Nov 17 - South Korean treasury bond futures soared on Monday afternoon, lifted by a renewed pledge by the central bank to support ailing bond markets.
December treasury futures contract <KTBc1> jumped as much as 64 ticks and then settled back to be quoted 50 ticks higher at 107.00 as of 0553 GMT, paring their losses of 169 ticks suffered in the previous two sessions.
The Bank of Korea reaffirmed earlier its previous pledges to take action if necessary to calm local financial markets and said recent drops in domestic bond prices were excessive.
Chung Hee-chun, head of the Bank of Korea's financial markets department, said by telephone investors had been reacting "too sensitively" to negative factors and that the central bank was closely watching the market's movements.
The yield on South Korea's benchmark 5-year treasury bonds <KR5YT=KSDA> jumped 66 basis points last week, hit by supply concerns as the government unveiled a 10 trillion won ($7.15 billion) investment fund plan for corporate bonds.
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