Korea Bond Market Daily Report: 10/24/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.94% | ▼ 0.7 | ▼ 30.4 | ▼ 111.9 |
| 10Y KTB | 3.13% | ▼ 0.2 | ▼ 17.8 | ▼ 124.6 |
| Term Spread(bp) | 19.2 | ▲ 0.5 | ▲ 12.6 | ▼ 12.7 |
| Corp. AA- 3Y | 3.51% | ▼ 0.4 | ▼ 47.2 | ▼ 135.3 |
| Credit spread(bp) | 57.2 | ▲ 0.3 | ▼ 16.8 | ▼ 23.4 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.08% | ▲ 5.2 | ▼ 24.8 | ▼ 96.8 |
| 10Y US Treasury | 4.25% | ▲ 4.8 | ▲ 29.8 | ▼ 61.2 |
| Term Spread(bp) | 16.6 | ▼ 0.4 | ▲ 54.6 | ▲ 35.6 |
[Market Trends].
US 10-year Treasury yields rose to 4.26% intraday, while domestic rates also rose in response to a possible Trump victory before reversing lower ahead of the Q3 GDP release.
Preliminary Q3 GDP data came in weaker than expected, with electricity costs rising 0.1%, but private consumption and capital investment picked up.
[Top economic news and events].
Top U.S. News
In the Fed's Beige Book, economic activity was assessed as largely unchanged and still growing at a slight to moderate pace.
Existing home sales fell 1.0% month-over-month in September to an annualized rate of 3.84 million units, the lowest level since October 2010.
Featured News
South Korea's preliminary Q3 GDP growth report came in at +0.1% ex-oil, significantly below market expectations of +0.5%.
The authorities have decided to relax the discount rate regulation for insurers, suspending the 30-year final observation period.
Other News and Events
There have been 49 cases of COVID-19 E. coli infections in the U.S. linked to McDonald's, and the company's stock price fell -5.1%.
The Bank of Canada cut its benchmark interest rate by 50 basis points for the first time since the pandemic, as inflation returned to its target of 2%.
[Response Strategy].
We need to keep a close eye on the total volume, maturity mix, and TGA targets for the first quarter of next year and devise a strategy to respond to the fluctuations in economic data in Korea and the US.
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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