South Korean Bond Futures Rise Despite US Treasury Weakness on July 17

South Korean government bond futures rose in overnight trading on the 17th, defying weakness in US Treasuries. The 3-year Korea Treasury Bond (KTB) futures closed 3 ticks higher at 102.92 compared to the previous day's regular session close, while 10-year KTB futures climbed 29 ticks to 105.70. The gains occurred as foreign investors net-bought 178 contracts of 10-year futures and banks purchased 100 contracts, even as US Treasury yields edged up by 0.50 basis points for 10-year and 30-year maturities. Concerns over potential disruptions to oil shipping routes through the Strait of Hormuz and Red Sea persisted, while US June retail sales data matched expectations at +0.2% month-over-month, with core retail sales showing a solid +0.5% increase.

3-Year KTB Futures Rise 3 Ticks to 102.92

According to the Seoul bond market on the 17th, 3-year KTB futures closed overnight trading at 102.92, up 3 ticks from the previous day's regular session close. Foreign investors net-bought 2 contracts and individual investors purchased 124 contracts. Financial investment firms net-sold 126 contracts. Trading volume for 3-year futures decreased slightly to 285 contracts from 295 contracts in the previous session.

10-Year KTB Futures Climb 29 Ticks to 105.70

The 10-year KTB futures finished overnight trading at 105.70, up 29 ticks. Foreign investors net-bought 178 contracts and banks purchased 100 contracts. Financial investment firms and individual investors net-sold 223 contracts and 55 contracts respectively. Trading volume for 10-year futures surged to 507 contracts from 85 contracts in the previous session.

US Treasury Yields Edge Higher Amid Solid Retail Data

US Treasury yields rose slightly during the same period. The 10-year and 30-year US Treasury yields each increased 0.50 basis points compared to the previous trading day's New York market close. The 2-year yield climbed 0.60 basis points. US June retail sales rose 0.2% month-over-month, matching market expectations, while the previous month's figure was revised upward to 1.0% from 0.9%. Core retail sales excluding volatile categories such as autos, gasoline, building materials, and food services showed a robust 0.5% month-over-month increase. Gasoline station sales plunged 5.3% month-over-month due to a sharp drop in fuel prices. Rate hike bets, which had weakened considerably following this week's consumer price and producer price data, retraced slightly.

FAQ

What happened to South Korean bond futures on the 17th? South Korean 3-year KTB futures rose 3 ticks to 102.92 and 10-year KTB futures climbed 29 ticks to 105.70 in overnight trading on the 17th, despite US Treasury weakness.

How did US retail sales perform in June? US June retail sales increased 0.2% month-over-month, matching market expectations. Core retail sales excluding volatile categories rose 0.5% month-over-month, indicating solid consumer spending.