SEOUL: South Korean government bond prices fell on Friday as persistent foreign selling in local bond futures dented sentiment, more than offsetting a boost from a relatively small amount of issuance planned for the next month.
Foreign investors were net sellers of the liquid 3-year treasury bond futures for 604.3 billion won ($569.32 million). It was their 23rd consecutive day of selling, the longest such streak on record.
The yield on the benchmark 10-year government bonds ended up 1.9 basis points at 3.672 percent while the 5-year yield added 2.8 basis points to 3.347 percent, setting the highest close since Aug. 22.
Lead December futures on three-year treasury bonds finished down 0.06 point at 105.38.
"Foreigners just keep selling whereas (local) brokerages are buying, but nobody can say for sure how long this will continue," said a dealer at a local brokerage house.
The Ministry of Strategy and Finance said after trading closed that it would sell 6.4 trillion won worth of treasury bonds through auctions in December, less than the 6.7 trillion won it planned for November.
Comments
Comments are closed for this article.