Korea Bond Market Daily Report: 9/24/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.86% | ▲ 2.6 | ▼ 37.6 | ▼ 101.2 |
| 10Y KTB | 3.02% | ▲ 3.3 | ▼ 28.4 | ▼ 97.9 |
| Term Spread(bp) | 15.8 | ▲ 0.7 | ▲ 9.2 | ▲ 3.3 |
| Corp. AA- 3Y | 3.45% | ▲ 2.3 | ▼ 53.1 | ▼ 120.1 |
| Credit spread(bp) | 58.5 | ▼ 0.3 | ▼ 15.5 | ▼ 18.9 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 3.55% | ▼ 4.0 | ▼ 78.0 | ▼ 157.0 |
| 10Y US Treasury | 3.73% | 0.0 | ▼ 22.0 | ▼ 62.0 |
| Term Spread(bp) | 18 | ▲ 4.0 | ▲ 56.0 | ▲ 95.0 |
[Market Trends].
The divergence between manufacturing and services continues as the September S&P manufacturing PMI came in below expectations at 47.0 points, while the services PMI beat expectations. In addition, US Treasury yields have been falling slightly on expectations of a rate cut, but are rebounding under pressure from the level of interest rates.
In the wake of the U.S. Fed's rate cut, interest rate uncertainty is growing, and South Korea is at a point where it needs to consider its monetary policy independently of the U.S. Korean government bond yields have risen in line with US Treasury yields.
[Top economic news and events].
Top U.S. News
Forward 12-month EPS for the U.S. S & P 500 is at an all-time high, a positive sign that overall economic growth remains strong.
Manufacturing PMIs have contracted for three consecutive months, raising concerns about the future recovery. The services sector is doing relatively well.
Featured News
The head of the Korea Economic Research Institute suggests a monetary policy independent of the U.S. Fed, and the BOK's housing market decision will have an impact.
South Korea's 10-year sovereign bond auction received a high bid, indicating market concerns about interest rates.
Other News and Events
A number of economic indicators are in the spotlight against the backdrop of a slowing economy, and foreign economic data from Germany and the Eurozone may also have an impact.
With concerns that the U.S. job market is weakening, several Fed governors have been talking about cutting rates.
[Response Strategy].
As market expectations for rate cuts grow, portfolio diversification should be considered and a risk management strategy for interest rate volatility is needed.
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
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Original Post: https://aicraft.life/korea-bond-market-daily-report-9-24-2024-3/
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