Korea Bond Market Daily Report: 1/17/2025
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.63% | ▼ 4.9 | ▲ 11.9 | ▼ 60.9 |
| 10Y KTB | 2.80% | ▼ 5.8 | ▲ 5.3 | ▼ 52.0 |
| Term Spread(bp) | 17.6 | ▼ 0.9 | ▼ 6.6 | ▲ 8.9 |
| Corp. AA- 3Y | 3.28% | ▼ 3.9 | ▲ 7.9 | ▼ 70.6 |
| Credit spread(bp) | 65 | ▲ 1.0 | ▼ 4.0 | ▼ 9.7 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.24% | ▼ 2.9 | ▼ 0.9 | ▲ 2.1 |
| 10Y US Treasury | 4.61% | ▼ 4.7 | ▲ 4.3 | ▲ 54.3 |
| Term Spread(bp) | 37.2 | ▼ 1.8 | ▲ 5.2 | ▲ 52.2 |
[Market Trends].
The Bank of Korea has kept its key interest rate unchanged at 3.00%, due to the impact of currency volatility on the economy and political uncertainty.
The monetary policy makers left open the possibility of a rate cut in the next three months, and suggested that economic growth will slow from last year.
[Top economic news and events].
Top U.S. News
Retail sales in the U.S. rose 0.4% in December, below expectations, a sign that consumer activity is weaker than expected.
Initial jobless claims beat expectations, reaching 21.7 million, indicating weakness in the labor market.
Featured News
The Bank of Korea's Monetary Policy Committee left the key interest rate unchanged, citing weak domestic consumption and downward revisions to economic growth.
Monetary policy makers have expressed great concern about the impact of exchange rate instability on the economy.
Other News and Events
Bank of Korea Governor Lee Chang-yong emphasized his high vigilance against the negative impact of political risk on economic growth.
Fed Director Waller has been in the news lately for hinting at a possible rate cut in the first half of the year, depending on inflation numbers.
[Response Strategy].
Given the Bank of Korea's rate hike and external economic conditions, we need to keep an eye on the possibility of further rate cuts and focus on risk management.
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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