South Korean Bond Futures Narrow Losses After Strong 10-Year Auction

South Korean government bond futures narrowed their losses on the afternoon of the 13th, supported by strong demand from a 10-year treasury auction and increased foreign net buying. The 10-year treasury auction settled at a rate of 4.255% with 2.8 trillion won allocated, considered strong as market rates were trading at 4.274-4.280% during the auction period. Foreign investors expanded net purchases of bond futures, with 5,088 contracts of 3-year futures and 3,373 contracts of 10-year futures bought, providing additional support to the market trend.

10-Year Treasury Auction Settles at 4.255% Rate

The 10-year treasury auction conducted in the morning settled at a rate of 4.255% with 2.8 trillion won allocated. Bid volume reached 7.828 trillion won. Given that 10-year treasury rates were trading at 4.274-4.280% levels on the exchange during the auction period, the auction was considered to have been executed relatively strongly. A securities firm bond dealer stated that strong physical demand for the 10-year treasury benchmark continued to appear even before the auction.

Foreign Investors Net Purchase 5,088 Contracts of 3-Year Futures

Foreign investors net purchased 5,088 contracts of 3-year bond futures and 3,373 contracts of 10-year bond futures. For 3-year bond futures, net purchases were generally around 1,000 contracts, but expanded to over 5,000 contracts after 1 PM. Net purchases of 10-year bond futures also clearly increased to over 3,000 contracts. As of 1:34 PM on the 13th, 3-year bond futures stood at 103.04, down 6 ticks from the previous trading day. 10-year bond futures stood at 105.86, down 19 ticks.

KOSPI Index Falls Over 8% Triggering Circuit Breaker

The KOSPI index plunged over 8% on the 13th, triggering a circuit breaker. A securities firm bond dealer noted that strong net buying by foreign investors continued for 3-year bond futures.

FAQ

What rate did the 10-year treasury auction settle at on the 13th? The 10-year treasury auction settled at a rate of 4.255% with 2.8 trillion won allocated. Bid volume reached 7.828 trillion won.

How many bond futures contracts did foreign investors net purchase? Foreign investors net purchased 5,088 contracts of 3-year bond futures and 3,373 contracts of 10-year bond futures on the 13th.