- The Head of the ruling People Power Party’s policy committee on Friday stated that the ‘South Korean Government is to announce measures next week to boost domestic consumption.’
- This week’s data release saw the overall consumer sentiment index edge down by 2.8 points to 100.8 in August, according to the BOK. The threshold dividing optimism and pessimism is 100.
- An index measuring the outlook for home prices climbed to 118 in August from 115 last month, marking a third straight rise; dominated by housing in Seoul.
- Concerns about Seoul house prices have been mentioned explicitly by the Bank of Korea Governor.
- Several government spokesmen have indicated their dissatisfaction at the Central Bank not cutting rates this week.
- Any policy announcement will be watched closely by the bond market for the potential impact on issuance of new government bonds and any likely impact on monetary policy going forward.
- The KTB 10yr bond ticked up 1bp in yield in the morning session.
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