Korea Bond Market Daily Report: 10/29/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.93% | ▲ 5.0 | ▼ 30.8 | ▼ 114.1 |
| 10Y KTB | 3.12% | ▲ 6.3 | ▼ 18.9 | ▼ 116.3 |
| Term Spread(bp) | 18.5 | ▲ 1.3 | ▲ 11.9 | ▼ 2.2 |
| Corp. AA- 3Y | 3.50% | ▲ 5.2 | ▼ 47.7 | ▼ 138.1 |
| Credit spread(bp) | 57.1 | ▲ 0.2 | ▼ 16.9 | ▼ 24.0 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.14% | ▲ 3.4 | ▼ 18.6 | ▼ 84.6 |
| 10Y US Treasury | 4.28% | ▲ 3.4 | ▲ 33.4 | ▼ 55.6 |
| Term Spread(bp) | 14 | 0.0 | ▲ 52.0 | ▲ 29.0 |
[Market Trends].
U.S. Treasuries have risen on weak bids for 2-year and 5-year notes and Trump risk, while in South Korea, domestic rates have been rising on comments from the Bank of Korea that the central bank should consider the issue of exchange rate appreciation in the path of monetary policy.
Both domestic and international interest rates are rising, with Treasury rates in the U.S. in particular experiencing increased volatility with weak bids, while rates in South Korea are also higher, influenced by comments from Governor Lee Chang-yong.
[Top economic news and events].
Top U.S. News
The U.S. Treasury lowered its fourth-quarter borrowing forecast to $546 billion and raised its first-quarter borrowing projection for next year to $823 billion, reflecting higher-than-expected cash balances.
Interest rates in the U.S. have risen, with low bidding rates, especially for 2-year and 5-year bids, a sign of weak demand.
Featured News
The Governor of the Bank of Korea announced that growth will exceed 2% this year, which will have limited implications for monetary policy going forward.
South Korean government bond yields jumped following comments from Governor Lee Chang-yong, and the market's attention is now focused on Q4 growth.
Other News and Events
The U.S. 10-year Treasury rate is nearing 4.3%, adding volatility to financial markets.
According to Bloomberg, the U.S. Treasury Department revised its borrowing for the fourth quarter lower than previously estimated.
[Response Strategy].
Given rising domestic and international interest rates, it is important to issue stable fiscal securities and control market volatility, especially through interest rate cuts. It is necessary to continuously monitor additional economic indicators and financial policy volatility to formulate a market response strategy.
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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