Korea Bond Market Daily Report(Gemini): 10/2/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.81% | ▼ 1.5 | ▼ 42.9 | ▼ 107.3 |
| 10Y KTB | 2.99% | ▼ 0.8 | ▼ 31.4 | ▼ 103.8 |
| Term Spread(bp) | 18.1 | ▲ 0.7 | ▲ 11.5 | ▲ 3.5 |
| Corp. AA- 3Y | 3.40% | ▼ 1.2 | ▼ 58.3 | ▼ 126.1 |
| Credit spread(bp) | 58.6 | ▲ 0.3 | ▼ 15.4 | ▼ 18.8 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 3.66% | ▲ 11.0 | ▼ 67.0 | ▼ 137.0 |
| 10Y US Treasury | 3.81% (3.81%) | ▲ 6.0 | ▼ 14.0 | ▼ 78.0 |
| Term Spread(bp) | 15 | ▼ 5.0 | ▲ 53.0 | ▲ 59.0 |
[Market Trends].
The ISM Manufacturing Index for September came in at 47.2 points, below expectations (47.5 points) and the JOLTS Job Openings for August came in at 8.04 million, above expectations (7.69 million).
U.S. Treasury yields fell on a weaker-than-expected ISM manufacturing report and safe-haven sentiment amid geopolitical risks.
[Top economic news and events].
Top U.S. News
Job openings came in at 8.04 million in August, beating both expectations (7.64 million) and the prior month (8.04 million). The number of job openings in July was the lowest in three and a half years since January 2021, but the U.S. labor market improved slightly in August.
The ISM Manufacturing PMI for September was released at 47.2 (expected 47.6, previous 47.2). The new orders index and production index drove the index higher. The ISM reported that demand continues to weaken, production is declining, and investment remains reluctant.
Featured News
JOLTs job openings came in at 8.04 million in August, beating both expectations (7.64 million) and the prior month (8.04 million). The U.S. labor market improved slightly in August after July's job openings were the lowest in three and a half years since January 2021. The job openings rate increased month-over-month from 4.6% to 4.8%, while the quit rate (3.4% to 3.1%), job search rate (3.4% to 3.3%), and turnover rate (2.0% to 1.9%) decreased month-over-month.
The US ISM Manufacturing PMI for September was released at 47.2 (expected 47.6, previous 47.2). The new orders index and production index drove the index higher. The ISM reported that demand continues to weaken, production is declining, and investment remains reluctant.
Other News and Events
Eurozone consumer inflation came in at 1.8% YoY in September, the first time it has been below 2% in three years. Coupled with expectations of a rate cut by the ECB, eurozone bond yields strengthened, with longer-dated securities dominating, putting bullish pressure on US Treasury yields.
Iran has fired nearly 180 ballistic missiles at Israel in just over five months. Fears of military conflict and escalation have sparked a sell-off, particularly among large tech stocks, including Nvidia (-3.7%), Apple (-2.9%), Microsoft (-2.2%), and Tesla (-1.4%), as well as the Nasdaq Composite.
[Response Strategy].
We'll need to continue to monitor if this continues beyond the end of the quarter, and we're not even close to the scale of the 2019 repo seizures yet.
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-reportgemini-10-2-2024/
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