Korea Bond Market Daily Report(Gemini): 11/20/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.89% | ▼ 2.6 | ▼ 35.1 | ▼ 79.2 |
| 10Y KTB | 3.04% | ▼ 2.7 | ▼ 27.0 | ▼ 76.0 |
| Term Spread(bp) | 14.7 | ▼ 0.1 | ▲ 8.1 | ▲ 3.2 |
| Corp. AA- 3Y | 3.46% | ▼ 2.5 | ▼ 52.3 | ▼ 104.7 |
| Credit spread(bp) | 56.8 | ▲ 0.1 | ▼ 17.2 | ▼ 25.5 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.28% | ▼ 0.8 | ▼ 4.8 | ▼ 59.8 |
| 10Y US Treasury | 4.39% | ▼ 2.6 | ▲ 44.4 | ▼ 4.6 |
| Term Spread(bp) | 11.2 | ▼ 1.8 | ▲ 49.2 | ▲ 55.2 |
[Market Trends].
U.S. Treasury yields fall and domestic rates decline: U.S. 10-year Treasury yields fell, with further gains capped around 4.5%, while domestic rates also declined, driven by the BOJ Governor's cautious rate hike stance and net purchases of Treasury futures by foreigners. Treasury markets remain stable despite ongoing Russo-U.S. war tensions.
Repeating the 4.5% low in the US bond market: The US bond market is repeating a pattern of rising to around 4.50% and then falling back as bargain hunters come in. This is an important indicator that reflects the market sentiment of investors.
[Top economic news and events].
Top U.S. News
U.S. Household Credit Access Worsens: A survey by the New York Fed found that U.S. households' access to credit is worsening, with rejection rates for auto loans and mortgage refinancing applications at a 10-year high, an important indicator of possible slowing growth in the U.S. economy.
Delays and conflicts in building the US economic team since Trump's election: President-elect Trump has struggled to assemble his economic team, and internal conflicts have delayed decisions on key figures such as the Treasury Secretary. This adds to uncertainty about the future direction of US economic policy.
Featured News
Hana Securities Research Center Holds Annual Outlook Forum (Financial Market and Industry Outlook): Hana Securities' two-day Annual Outlook Forum, held from November 19th to 20th, will cover the financial market outlook and industry-specific outlook. It provides an in-depth analysis of the domestic economy as a whole, and will be an important source of information for formulating investment strategies.
Rents for new renters are falling: Recently released data shows that rents for new renters are falling, suggesting a continued decline in the future. This is an important indicator of changes in the housing market and could have implications for consumer prices.
Other News and Events
Remarks from the Governor of the Bank of Japan: Bank of Japan Governor Kazuo Ueda said that the Japanese economy is recovering moderately and that the bank will adjust its monetary policy if the numbers are in line with expectations. He also remained cautious about the possibility of a rate hike, which is an important signal about the direction of Japan's monetary policy.
Japan's Q3 GDP growth slows: Japan's Q3 GDP growth slowed to 0.2% quarter-over-quarter, but private consumption remained robust, a mixed sign of resilience in the consumer market amid concerns that the Japanese economy is slowing.
[Response Strategy].
You need to closely monitor market conditions and formulate an appropriate investment strategy. In the short term, an investment strategy that takes into account falling interest rates may be effective, but in the medium to long term, it is important to diversify your portfolio to take into account uncertainties. In particular, risk management that takes into account risks such as rising interest rates in the United States, political uncertainty, and prolonged Russo-U.S. wars is essential.
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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