The most liquid June three-year Treasury bond contract fell as much as 43 ticks before paring losses slightly to trade 37 ticks lower at 105.23 0020 GMT.
“(I might be able to tell) after watching the May policy meeting and seeing more data around July and August,” Bank of Korea Governor Rhee Chang-yong said. , when reporters asked if the bank was considering a 50 basis point hike at its May 26 meeting.
South Korea’s central bank generally raises or lowers its benchmark interest rate in increments of 25 basis points.
At their first head-to-head meeting since taking office this month, Rhee and Finance Minister Choo Kyung-ho agreed to strengthen policy coordination in the fight against corruption. Inflation and instability in financial markets, today’s greatest risks to the economy.
They also agreed that downside risks to growth in Asia’s fourth largest economy had increased, a joint statement from the two organizations added.
The country’s two most powerful economic policymakers held their first face-to-face meeting on Monday after taking office this month and following their participation in a meeting hosted by President Yoon Suk-yeol on Friday.
The statement did not disclose further comments on specific asset classes or indicators. (Reporting by Choonsik Yoo and Seunggyu Lim; editing by Sam Holmes)