Korea Bond Market Daily Report: 11/15/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.93% | ▼ 1.0 | ▼ 31.1 | ▼ 92.8 |
| 10Y KTB | 3.07% | ▲ 0.7 | ▼ 23.2 | ▼ 90.6 |
| Term Spread(bp) | 14.5 | ▲ 1.7 | ▲ 7.9 | ▲ 2.2 |
| Corp. AA- 3Y | 3.49% | ▼ 0.9 | ▼ 48.8 | ▼ 121.2 |
| Credit spread(bp) | 56.3 | ▲ 0.1 | ▼ 17.7 | ▼ 28.4 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.36% | ▲ 9.0 | ▲ 3.0 | ▼ 44.0 |
| 10Y US Treasury | 4.45% | ▲ 1.1 | ▲ 50.1 | ▲ 1.1 |
| Term Spread(bp) | 9.1 | ▼ 7.9 | ▲ 47.1 | ▲ 45.1 |
[Market Trends].
US October headline CPI came in at 0.2% m/m and core CPI at 0.3%, both in line with expectations. Longer-term Treasury rates moved accordingly.
Short-term interest rates are also on the rise as the likelihood of a rate hike by the US Federal Reserve increases. In the international market, the won/dollar exchange rate fell slightly to 1,397.5 won.
[Top economic news and events].
Top U.S. News
US Federal Reserve Chair Jerome Powell emphasized that current economic conditions do not require a rush to cut rates, weighing in on the possibility of a rate hike at the next FOMC.
The announcement of SEC Chairman Gary Gensler's possible resignation caught the attention of the market, with XRP surging more than 15%.
Featured News
In the Korean government bond market, foreign investors' net selling of government bond futures weighed on interest rates, while the number of people employed in October continued to rise.
Deputy Prime Minister Choi Sang-mok's comments on measures to stabilize the exchange rate are expected to have a positive impact on the domestic bond market.
Other News and Events
The U.S. midterm elections have confirmed a Republican red sweep, disrupting markets.
With interest rate cuts expected and the US economic outlook uncertain, concerns have been raised about commercial banks and the quality of their loans.
[Response Strategy].
Currently, you need a strategy to adjust your portfolio to account for possible rate cuts and inflation, and to diversify risk from US political trends and monetary policy.
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
Download the PDF report: Download PDF
Original Post: https://aicraft.life/korea-bond-market-daily-report-11-15-2024/
Comments
Post a Comment