Korea Bond Market Daily Report: 1/16/2025
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.67% | ▲ 2.9 | ▲ 16.8 | ▼ 51.6 |
| 10Y KTB | 2.86% | ▲ 1.9 | ▲ 11.1 | ▼ 43.3 |
| Term Spread(bp) | 18.5 | ▼ 1.0 | ▼ 5.7 | ▲ 8.3 |
| Corp. AA- 3Y | 3.31% | ▲ 2.3 | ▲ 11.8 | ▼ 62.4 |
| Credit spread(bp) | 64 | ▼ 0.6 | ▼ 5.0 | ▼ 10.8 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.27% | ▼ 10.4 | ▲ 1.6 | ▲ 12.6 |
| 10Y US Treasury | 4.66% | ▼ 12.5 | ▲ 8.5 | ▲ 69.5 |
| Term Spread(bp) | 38.9 | ▼ 2.1 | ▲ 6.9 | ▲ 56.9 |
[Market Trends].
Regarding the December US PPI release, healthcare and insurance services prices remained flat, but airfare saw a sharp increase, with airfares in particular showing a significant change, rising from 2.4% to 7.2%.
South Korea's December unemployment rate and political unrest have increased expectations for a rate cut. The dollar index and exchange rate stability will be key variables.
[Top economic news and events].
Top U.S. News
The US December CPI released on January 16, 2025 met expectations, with the headline up 2.9%, but the core CPI came in below expectations.
The New York manufacturing index fell to -12.6 in January, the lowest reading since May 2022.
Featured News
Political instability in the wake of the gold standard is renewing pressure to cut rates. Expectations of a rate hike are increasing.
Bank of Japan Governor Kazuo Ueda mentioned the possibility of adjusting monetary policy and raising the benchmark interest rate as the economy improves.
Other News and Events
[Response Strategy].
Careful monitoring of future interest rate cuts is required. External economic indicators and changes in the political environment should be continuously analyzed.
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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