South Korea's 3-Year, 10-Year Government Bond Futures Fall on August 7 Ahead of Next Week's Auction

According to Yonhap Infomax, South Korea's government bond futures reversed to weakness on August 7 afternoon due to concerns over next week's debt auction. As of 1:48 p.m., three-year bond futures fell 3 basis points to 103.36, while 10-year futures declined 20 basis points to 106.34. After rising in the morning driven by local long positions, prices weakened in the afternoon as dealers prepared for a planned 3.6 trillion won three-year note auction scheduled for the following Monday.

Foreign investors net-purchased 4,828 three-year futures contracts and 291 ten-year futures contracts, showing continued appetite despite market weakness.