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S.Korea treasury bond futures tumble
Reuters - 2 hours 25 minutes ago
SEOUL, Nov 7 - South Korean treasury bond futures slid on Friday afternoon as the central bank governor indicated the Bank of Korea will resort to direct cash injections rather than rate cuts to resolve domestic liquidity crunch problems.
December treasury futures contracts <KTBc1> plunged as much as 49 ticks to be traded 47 ticks lower at 109.00 as of 0508 GMT.
The central bank cut its base rate by 25 basis points to 4 percent early on Friday, disappointing many investors who had wanted an aggressive rate cut of as much as 50 basis points.
Traders said Bank of Korea Governor Lee Seong-tae's pledge at a news conference to supply cash to markets "whenever and wherever needed" was taken as a signal the bank might use liquidity flows to calm markets in preference to rate cuts.
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