Korea Bond Market Daily Report: 9/23/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.84% | ▼ 0.5 | ▼ 40.2 | ▼ 105.2 |
| 10Y KTB | 2.99% | ▲ 1.0 | ▼ 31.7 | ▼ 97.4 |
| Term Spread(bp) | 15.1 | ▲ 1.5 | ▲ 8.5 | ▲ 7.8 |
| Corp. AA- 3Y | 3.43% | ▼ 0.6 | ▼ 55.4 | ▼ 121.9 |
| Credit spread(bp) | 58.8 | ▼ 0.1 | ▼ 15.2 | ▼ 16.7 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 3.59% | ▼ 2.0 | ▼ 74.0 | ▼ 149.0 |
| 10Y US Treasury | 3.73% | ▲ 3.0 | ▼ 22.0 | ▼ 64.0 |
| Term Spread(bp) | 14 | ▲ 5.0 | ▲ 52.0 | ▲ 85.0 |
[Market Trends].
Dovish comments from Fed members have limited gains in Treasury yields amid lingering concerns about the pace of rate cuts in the US. In addition, foreign investors have been net sellers of U.S. Treasury futures, putting upward pressure on domestic long-term rates.
While China's economy is in its longest deflationary period since 1999, the U.S. has seen steady employment data. This suggests that the U.S. economy is relatively healthier and has implications for the Fed's interest rate policy.
[Top economic news and events].
Top U.S. News
Christopher Waller, a spokesman for the Fed, said that inflation is slowing faster than expected and that the central bank would consider aggressive rate cuts if weak economic data persists.
U.S. weekly jobless claims fell, U.S. Treasury yields rose, and future economic data is expected to determine whether the Federal Reserve will raise interest rates.
Featured News
South Korean government bond yields rise, with foreign investors net selling 10-year government bond futures. The Bank of Japan's rate hike had limited impact on the Korean bond market.
South Korea's September consumer sentiment and employment data is scheduled for release, and positive results could reflect stability in the country's economy.
Other News and Events
BCA research predicts year-end recession, points to labor market instability, finds part-time workers want full-time jobs over temporary work.
In the Fed's September revised economic outlook, the unemployment rate was revised upward to 4.4%, indicating rising economic uncertainty.
[Response Strategy].
Concerns about the pace of rate cuts are causing investors to take a cautious approach and it is important to consider strategic adjustments to long-term interest rates. Investors should also pay close attention to developments on foreign investment taxes.
Disclaimer The information contained in this report has been obtained from sources believed to be reliable, but we do not guarantee its accuracy or completeness. This report is for informational purposes only and is not a solicitation or offer to buy or sell any security or financial instrument. Opinions expressed in this report are subject to change without notice. Investment decisions are the sole responsibility of the investor and you should seek professional advice as needed
Download the PDF report: Download PDF
Original Post: https://aicraft.life/korea-bond-market-daily-report-9-23-2024-2/
Comments
Post a Comment