Korea Bond Market Daily Report: 10/14/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.95% | ▼ 1.5 | ▼ 29.3 | ▼ 100.6 |
| 10Y KTB | 3.08% | ▼ 0.3 | ▼ 22.1 | ▼ 105.7 |
| Term Spread(bp) | 13.8 | ▲ 1.2 | ▲ 7.2 | ▼ 5.1 |
| Corp. AA- 3Y | 3.52% | ▼ 1.9 | ▼ 45.7 | ▼ 121.2 |
| Credit spread(bp) | 57.6 | ▼ 0.4 | ▼ 16.4 | ▼ 20.6 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 3.95% | ▼ 2.7 | ▼ 37.7 | ▼ 108.7 |
| 10Y US Treasury | 4.10% | ▲ 1.0 | ▲ 15.0 | ▼ 53.0 |
| Term Spread(bp) | 14.7 | ▲ 3.7 | ▲ 52.7 | ▲ 55.7 |
[Market Trends].
As of October 14, 2024, the September Producer Price Index (PPI) for the United States came in below expectations, impacting financial markets. With one-year inflation expectations higher than expected, the US Treasury yield curve steepened.
The Bank of Korea cut its benchmark interest rate by 25 basis points at its October monetary policy meeting, and domestic interest rates have been on a downward trend. The decision was driven by progress in achieving inflation targets and a more advanced diagnosis of domestic uncertainty.
[Top economic news and events].
Top U.S. News
Initial jobless claims in the US rose to 25.8 million in September, significantly exceeding expectations. This data was recorded alongside a number of natural disaster events in the past.
The University of Michigan Consumer Sentiment Index came in below expectations at 68.9, raising concerns about consumer sentiment. One-year inflation expectations are also showing signs of increasing.
Featured News
South Korea's import and export prices for September will be released this Tuesday, which will provide insight into the export and import trends of the domestic economy.
In South Korea, new unemployment data will be released on Tuesday, which will be important for statistical analysis of the labor market as a whole.
Other News and Events
The October ECB monetary policy meeting will take place this Thursday, and is expected to have a major impact on global interest rate policy changes.
With the release of the New York Manufacturing Index for October in the US, it's time to keep an eye on economic data.
[Response Strategy].
There is a strong need to rebalance portfolios in light of interest rate volatility in the U.S. and the reaction to domestic rate cuts, with particular interest in higher credit quality bonds.
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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