South Korea treasury yields hit 32-month lows on surprise rate cut
South Korea bond yields hit lowest since March 2022
Korean won weakens against dollar
KOSPI little changed, foreigners net sellers
For the midday report, please click nL2N3MZ00W
SEOUL, Nov 28 (Reuters) -Round-up of South Korean financial markets:
** South Korea's treasury bond yields dropped to their lowest levels in 32 months on Thursday, as the country's central bank cut interest rates for the second straight meeting in a row, bucking market expectations.
** The won weakened, though its losses were capped amid suspicions of intervention by authorities, while stocks were flat.
** The most liquid three-year Korean treasury bond yield KR3YT=RR was down 11.2 basis points at 2.643% at 0632 GMT, and the benchmark 10-year yield KR10YT=RR was down 9.4 bps at 2.795%. Both hit their lowest levels since late-March 2022 earlier in the session.
** The Bank of Korea delivered a surprise interest rate cut and signalled more to come, as economic growth faltered and policymakers turned a wary eye to trade risks from a second Donald Trump presidency.
** It was the first time since 2009 the central bank lowered interest rates for two consecutive meetings.
** "The central bank expressed its will to boost the economy with the surprise cut, which should be welcomed as there had not been any economic stimulus policy in Korea, unlike in the United States, Europe and China," said Lee Kyoung-min, an analyst at Daishin Securities.
** Reaction in the foreign exchange market was comparably limited. The currency was last quoted at 1,395.6 per dollar on the onshore settlement platform KRW=KFTC, 0.20% lower than its previous close at 1,392.8.
** South Korea's foreign exchange authorities were seen selling U.S. dollars to cap losses in the won, according to local dealers.
** In the stock market, the benchmark KOSPI .KS11 closed up marginally by 1.61 points, or 0.06%, at 2,504.67.
** Foreigners were net sellers of shares worth 492.1 billion won ($352.6 million).
($1 = 1,395.7100 won)
Reporting by Jihoon Lee; Editing by Varun H K
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