Korea Bond Market Daily Report(Gemini): 11/4/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.94% | ▲ 0.3 | ▼ 30.1 | ▼ 113.2 |
| 10Y KTB | 3.09% | ▼ 1.0 | ▼ 21.6 | ▼ 119.8 |
| Term Spread(bp) | 15.1 | ▼ 1.3 | ▲ 8.5 | ▼ 6.6 |
| Corp. AA- 3Y | 3.51% | ▲ 0.4 | ▼ 47.3 | ▼ 139.3 |
| Credit spread(bp) | 56.8 | ▲ 0.1 | ▼ 17.2 | ▼ 26.1 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.16% | ▲ 1.0 | ▼ 17.0 | ▼ 67.0 |
| 10Y US Treasury | 4.28% | ▼ 1.0 | ▲ 33.0 | ▼ 29.0 |
| Term Spread(bp) | 12 | ▼ 2.0 | ▲ 50.0 | ▲ 38.0 |
[Market Trends].
US non-farm payrolls for October came in at 120k, well below expectations (100k) and the unemployment rate was in line with expectations at 4.1%. After opening lower on the weak jobs report, US Treasury rates retraced their losses on the potential for hurricane-related data distortions and election fears.
Domestic rates, which had been falling on bargain-hunting inflows, ended mixed, retracing some of their losses as investors awaited US employment data.
[Top economic news and events].
Top U.S. News
US October nonfarm payrolls came in at 10.2K, well below expectations (10.0K) and the unemployment rate was in line with expectations at 4.1%.
U.S. nonfarm payrolls rose by 12k in October, well below consensus (100k).
Featured News
The Bank of Korea published today in the BOK Economic Research its estimate of the real neutral interest rate, which was announced at the ‘BOK Conference 2024’ held on May 30-31.
The 70 million early voters is more than 40,000 more than in the 2016 presidential election, which took four days for Biden to win, compared to the pandemic-specific early voting of 145 million in the 2020 election.
Other News and Events
US nonfarm payrolls rose by 12k in October, well below consensus (100k). The impact is attributed to hurricanes and the Boeing strike.
With the U.S. presidential election just one day away (11/5 local time), it's expected to be a close race between Harris and Trump.
[Response Strategy].
Market volatility in the wake of weak US employment data and the election results should be closely monitored. Domestic interest rate movements should be reacted to by taking into account both US interest rate trends and domestic economic indicators.
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-11-4-2024/
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