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(AFX UK Focus) 2009-10-06 02:07
S.Korea treasury bonds retreat on firmer shares
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SEOUL, Oct 6 (Reuters) - South Korean treasury bonds turned lower early on Tuesday after a three-day rally, weighed by rebounding shares and an impending rate decision by the central bank.
Although the Bank of Korea is widely expected to hold rates steady again on Friday, investors are fretting over growing chances of a rate hike this year amid signs of a fast economic recovery and property market boom.
The benchmark five-year treasury bond yield rose 2 basis points to 4.77 percent while December treasury bond futures fell 3 ticks to 109.05 as of 0032 GMT.

(Reporting by Seo Eun-kyung; Editing by Jonathan Hopfner)

((eunkyung.seo@thomsonreuters.com;+822 3704 5648; Reuters Messaging:eunkyung.seo.reuters.com@reuters.net)) Keywords: MARKETS KOREA BONDS (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com)

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Bonds, money
Central banks
Macroeconomic stories, OECD reports
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