- The KTB futures market inched up and down in a quite narrow range of 103.71 to 103.89.
- Following the strong downward trend that has continued since the beginning of April, the USD/KRW futures market showed a similar weakness this week.
KTB Futures Market
During the week, the KTB futures market inched up and down in a quite narrow range of 103.71 to 103.89.
From Monday to Tuesday, the June KTB futures contract increased by 15 ticks and posted at 103.89 on Tuesday thanks to the weak US Stock market and stronger-than-expected result of the 10-yr KTB auction on Monday selling KRW 460 billion at 7.09 percent.
However from Wednesday to Friday, without outstanding factors that could affect the government bond futures market, the lead moth contract KTB206 had been stuck in a narrow band with a width of 6 ticks and finally finished the week at 103.71.
The volume in the KTB futures market decreased a little this week. The average daily trading volume in the KTB futures market recorded 51,411 lots, down 8,590 lots or 14.3 percent from the previous week.
USD/KRW Currency Futures Market
Following the strong downward trend that has continued since the beginning of April, the USD/KRW futures market showed a similar weakness this week.
During the week, at the KOFEX USD/KRW F/X futures market, the lead month contract USD206 decreased by KRW 7.1 and eventually reached at KRW 1,264.5 per USD, the lowest level this year, on Friday.
More importantly, from Wednesday to Friday, the USD206 contract fall down without changing its direction as much as KRW 18.4 or 1.4 percent from the previous day's close.
The major reasons behind the on-going strength of the KRW against the Greenback are as follows:
- Switchover to the net-purchasing position by foreign investors in stock markets - Adding up to KRW 190.3 billion in the Seoul main bourse
- Great amount of selling by exporters whenever it comes close to 1,280-level
