AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 127.00 Decreased By ▼ -0.04 (-0.03%)
BOP 6.66 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.51 No Change ▼ 0.00 (0%)
DCL 8.52 Decreased By ▼ -0.03 (-0.35%)
DFML 41.50 Increased By ▲ 0.06 (0.14%)
DGKC 86.70 Decreased By ▼ -0.15 (-0.17%)
FCCL 32.21 Decreased By ▼ -0.07 (-0.22%)
FFBL 64.81 Increased By ▲ 0.01 (0.02%)
FFL 10.25 No Change ▼ 0.00 (0%)
HUBC 109.50 Decreased By ▼ -0.07 (-0.06%)
HUMNL 14.80 Increased By ▲ 0.12 (0.82%)
KEL 5.03 Decreased By ▼ -0.02 (-0.4%)
KOSM 7.45 Decreased By ▼ -0.01 (-0.13%)
MLCF 41.29 Decreased By ▼ -0.09 (-0.22%)
NBP 60.49 Increased By ▲ 0.08 (0.13%)
OGDC 189.70 Decreased By ▼ -0.40 (-0.21%)
PAEL 27.80 Decreased By ▼ -0.03 (-0.11%)
PIBTL 7.78 Decreased By ▼ -0.05 (-0.64%)
PPL 149.54 Decreased By ▼ -0.52 (-0.35%)
PRL 26.76 Decreased By ▼ -0.12 (-0.45%)
PTC 16.10 Increased By ▲ 0.03 (0.19%)
SEARL 86.02 Increased By ▲ 0.02 (0.02%)
TELE 7.73 Increased By ▲ 0.02 (0.26%)
TOMCL 35.40 Decreased By ▼ -0.01 (-0.03%)
TPLP 8.10 Decreased By ▼ -0.02 (-0.25%)
TREET 16.49 Increased By ▲ 0.08 (0.49%)
TRG 53.29 No Change ▼ 0.00 (0%)
UNITY 26.06 Decreased By ▼ -0.10 (-0.38%)
WTL 1.26 No Change ▼ 0.00 (0%)
BR100 9,983 Increased By 99.6 (1.01%)
BR30 31,127 Increased By 526.8 (1.72%)
KSE100 94,059 Increased By 703.4 (0.75%)
KSE30 29,143 Increased By 211.8 (0.73%)

South Korean treasury bond prices edged up on Friday after massive sell-offs on Thursday, but short-dated certificate of deposit (CD) rates hit a 7-month high amid growing chances of an early rate hike. Debt futures managed to pare up to a third of Thursday's losses but lost ground quickly after a high-ranking BOK official told Reuters that the current base rate of 2 percent was exceptionally low, hinting that the record-low rate could not sustain for long.
"I dropped my cautious view on the rate outlook after the ever-hawkish comments from the BOK governor. Now I expect a rate hike of up to 50 basis points before the end of this year," said Choi Suk-won, a fixed-income analyst at Samsung Securities. The debt market was dealt a heavy blow on Thursday from the Bank of Korea (BOK) governor's strong signal that it might raise the rates soon.
Treasury bonds regained some composure, with yields turning lower, but the 91-day CD rate, the benchmark for mortgage lending, rose for a second day to hit a seven-month high of 2.59 percent, tracing the recent surge in other debt rates. One-year interest rate swap (IRS) rates eased slightly after soaring 18 basis points to a 9-month high in the previous session. The front-end treasury bond futures contract ended up 5 ticks at 109.45 after gyrating between a 30-tick fall and 21-tick rise during the session. The contract on Thursday suffered its biggest daily loss since June.

Copyright Reuters, 2009

Comments

Comments are closed.