Korea Bond Market Daily Report: 10/30/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.94% | ▲ 0.4 | ▼ 30.4 | ▼ 113.7 |
| 10Y KTB | 3.12% | ▲ 0.1 | ▼ 18.8 | ▼ 116.2 |
| Term Spread(bp) | 18.2 | ▼ 0.3 | ▲ 11.6 | ▼ 2.5 |
| Corp. AA- 3Y | 3.50% | ▲ 0.1 | ▼ 47.6 | ▼ 138.0 |
| Credit spread(bp) | 56.8 | ▼ 0.3 | ▼ 17.2 | ▼ 24.3 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.10% | ▼ 2.2 | ▼ 23.2 | ▼ 89.2 |
| 10Y US Treasury | 4.26% | ▼ 2.4 | ▲ 30.6 | ▼ 58.4 |
| Term Spread(bp) | 15.8 | ▼ 0.2 | ▲ 53.8 | ▲ 30.8 |
[Market Trends].
November has important economic events coming up in the US and South Korea, including the US presidential election and the FOMC meeting.
The bond market is expected to see increased volatility in interest rates following the outcome of the US presidential election, especially in the event of a Trump re-election.
[Top economic news and events].
Top U.S. News
The US October jobs report (JOLTs) came in below expectations, indicating a cooling in the labor market, which impacted US bond rates.
Recent improvements in U.S. consumer confidence have been interpreted as a positive sign for the economy, especially with growing expectations for job growth.
Featured News
The governor of the Bank of Korea recently emphasized that growth is exceeding its potential and that a full-scale stimulus is not needed.
South Korea's government bond rates are expected to fall slightly following the US election results, but the economic outlook remains positive.
Other News and Events
There is a growing possibility of a redrawing of the economic map among Asia-Pacific countries, which is linked to changes in US trade and foreign policy.
The cryptocurrency market is experiencing strength, with the price of Bitcoin surpassing $71,000.
[Response Strategy].
In response to the expected rate cuts, we recommend partial profit-taking on Treasury yields and increased exposure to credit.
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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