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S.Korea bond futures fall on ‘giant-step’ rate hike danger

Bibliometric Details: Issue No: 5 | Issue Month:May | Issue Year:2022

© Reuters. FILE PHOTO: The metropolis skyline of Incheon is pictured early morning in an aerial gaze south of Seoul, South Korea, January 21, 2018. REUTERS/ Fabrizio Bensch

SEOUL (Reuters) -South Korea’s authorities bond futures plunged early on Monday after the central bank chief kept the door open for a bigger ardour rate manufacture bigger than atypical within the approaching months to strive in opposition to inflation.

The June contract on doubtlessly the most liquid three-year treasury bond futures fell as necessary as 43 ticks sooner than slicing losses a piece of to alternate 37 ticks decrease at 105.23 at 0020 GMT.

“(I would even be ready to utter) after watching the May perhaps well presumably additionally policy meeting and more records by round July and August,” Monetary institution of Korea Governor Rhee Chang-yong acknowledged when requested by newshounds if the bank used to be excited by a 50 basis-point inters hike at its May perhaps well presumably additionally 26 meeting.

South Korea’s central bank most incessantly raises or cuts its benchmark ardour rate in 25-basis point increments.

At their first one-on-one meeting since taking office this month, Rhee and Finance Minister Choo Kyung-ho agreed to develop policy coordination in preventing inflation and financial markets instability, the greatest most recent dangers facing the economy.

They additionally agreed that downside dangers to development in Asia’s fourth-greatest economy had increased, a joint order from the 2 organisations added.

The country’s two strongest economic policymakers held their first one-on-one meeting on Monday after taking office this month and in a observe-up to their attendance at a gathering on Friday hosted by President Yoon Suk-yeol.

The order didn’t expose any additional comments on specific asset lessons or indicators.

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