Korea Bond Market Daily Report(Gemini): 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].
The ISM Services Index for September came in at 54.9 points, beating expectations (51.7 points), indicating that the US services sector is stronger than expected.
U.S. Treasury rates rose, as a surge in international oil prices and favorable service sector economic data contributed to the rise in U.S. Treasury rates.
[Top economic news and events].
Top U.S. News
The U.S. ISM Services PMI for September came in at 54.9 points, beating both expectations (51.7 points) and the prior month's reading (51.5 points), extending expansion for the third consecutive month. The index was driven by strong gains in new orders (53pt to 59.4pt) and business activity (53.3pt to 59.9pt).
The total U.S. debt has ballooned to $35.7 trillion - a $345 billion spike in just three days, or a quarter of Bitcoin's market capitalization.
Featured News
The Consumer Price Index (CPI) rose 1.6% year-over-year in September, missing expectations (1.9%), suggesting that domestic inflation is continuing to slow.
Domestic interest rates fell on October 2, driven by slowing domestic inflation and risk aversion due to escalating geopolitical risks.
Other News and Events
The US dockworker strike was expected, and we were preparing for it. For two weeks, we'll be fine with our stockpiles, but after that, it's a problem.
US firms laid off 72,821 workers in September, down from 75,891 in the previous month, while weekly initial jobless claims rose to 225,000, beating both expectations (220,000) and the prior estimate (219,000).
[Response Strategy].
It's important to keep an eye on market conditions and develop a prudent investment strategy, especially with the possibility of interest rate hikes in the U.S. and fluctuations in international oil prices.
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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