South Korean won and treasury bond futures consolidated early on Thursday in thin pre-holiday trading, failing to break through major resistance levels. Treasury bond futures initially jumped as foreign investors continued to buy, prompting local players to cover short positions, but turned lower after failing to rise above 104.00.
Three-year treasury futures for the March contract were down 0.05 point at 103.75 as of 0100 GMT after rising as much as 0.18 point. "There are few reasons for the futures to rise except foreign buying. Foreigners hold the key in thin trade," said a dealer at a local brokerage.
Foreign investors bought a net 246.6 billion won ($213.7 million) worth of treasury futures after purchasing a combined net 1.55 trillion won during the previous two consecutive sessions. The won edged up against the dollar as the euro found some support, but gave up most of its earlier gains as it failed to stay stronger than 1,150 per dollar. The local currency was quoted at 1,152.4/2.9 versus the greenback, compared with Wednesday's domestic close of 1,154.0. Earlier, it strengthened to as firm as 1,149.8.
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