Korea Bond Market Daily Report: 12/16/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.54% | ▼ 0.8 | ▼ 69.9 | ▼ 92.4 |
| 10Y KTB | 2.68% | ▼ 2.4 | ▼ 63.0 | ▼ 84.9 |
| Term Spread(bp) | 13.5 | ▼ 1.6 | ▲ 6.9 | ▲ 7.5 |
| Corp. AA- 3Y | 3.20% | ▼ 0.3 | ▼ 78.3 | ▼ 98.9 |
| Credit spread(bp) | 65.6 | ▲ 0.5 | ▼ 8.4 | ▼ 6.5 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.25% | ▲ 6.5 | ▼ 8.5 | ▼ 19.5 |
| 10Y US Treasury | 4.40% | ▲ 7.5 | ▲ 44.5 | ▲ 48.5 |
| Term Spread(bp) | 15 | ▲ 1.0 | ▲ 53.0 | ▲ 68.0 |
[Market Trends].
In the US, the import price index rose 0.1% MoM in November, suggesting that future adjustments to monetary policy are expected.
In South Korea, long-term rates are falling due to strong buying in the 30-year bond amid the impeachment vote over the weekend.
[Top economic news and events].
Top U.S. News
In the US, concerns that the FOMC will cut interest rates less have pushed US Treasury yields higher, most notably the 10-year Treasury note, which rose to 4.40%.
There is growing wariness about Trump's policies in his second term, which has led to increased political and economic uncertainty in the US.
Featured News
In South Korea, the impeachment bill against President Yoon Seok-yul was passed by the National Assembly, effective immediately suspending him from office. The Constitutional Court is expected to make a final ruling within 180 days.
The Bank of Korea is considering further economic and financial policy discussions in light of political uncertainty.
Other News and Events
[Response Strategy].
To counter concerns about monetary tightening in the U.S., you may want to consider diversifying your portfolio toward domestic long-dated bonds.
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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