Korea Bond Market Daily Report: 10/4/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.78% | ▼ 3.1 | ▼ 46.0 | ▼ 110.4 |
| 10Y KTB | 2.93% | ▼ 6.0 | ▼ 37.4 | ▼ 109.8 |
| Term Spread(bp) | 15.2 | ▼ 2.9 | ▲ 8.6 | ▲ 0.6 |
| Corp. AA- 3Y | 3.37% | ▼ 2.7 | ▼ 61.0 | ▼ 128.8 |
| Credit spread(bp) | 59 | ▲ 0.4 | ▼ 15.0 | ▼ 18.4 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 3.63% | ▲ 2.0 | ▼ 70.0 | ▼ 149.0 |
| 10Y US Treasury | 3.79% | ▲ 5.0 | ▼ 16.0 | ▼ 90.0 |
| Term Spread(bp) | 16 | ▲ 3.0 | ▲ 54.0 | ▲ 59.0 |
[Market Trends].
In September, the ISM Services Index came in at 54.9, beating expectations of 51.7, while the employment index contracted for the first time in three months at 48.1. This suggests that the service sector is doing well overall.
US Treasury yields rose in response to the surge in oil prices, with the 10-year yield rising 6.5 basis points to 3.85%. US CPI came in below expectations at 1.6% y/y.
[Top economic news and events].
Top U.S. News
Citi's U.S. Economic Surprise Index returned to positive territory, and total debt expanded to $35.7 trillion in September.
The ISM Services Index for September came in at 54.9, exceeding expectations, indicating that the services sector of the economy continues to expand.
Featured News
South Korea's September CPI came in at 1.6% year-on-year, below expectations of 1.9%, raising concerns of slowing inflation.
Domestic interest rates have been falling due to risk aversion amid escalating geopolitical risks, and expectations are growing for the WGBI inclusion confirmation to be announced on October 9th.
Other News and Events
A U.S. port union has postponed a strike until Jan. 15 of next year after reaching a tentative deal on wages.
New York stocks closed lower as oil prices spiked following a possible Israeli attack on Iranian oil facilities.
[Response Strategy].
It is necessary to analyze economic trends closely, paying particular attention to the service sector and inflation, and focus on managing risk by investing in government bonds and diversifying the portfolio.
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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