Korea c.bank head warns of overheating treasuries

Central Bank of Korea Governor Chon Chol-hwan said on Feb 16, 2001 the local treasury market was showing signs of overheating, comments analysts saw as a bid to shift interest to flagging corporate bond issues. Chon said in a statement the treasury market had shown signs of overheating owing to an economic slowdown, a "flight-to-quality" trend, and expectations for monetary easing. He added he was concerned excessive treasury buying could hinder funds from flowing into the corporate sector

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