Korea Bond Market Daily Report: 12/9/2024
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.62% | ▲ 1.7 | ▼ 62.0 | ▼ 84.3 |
| 10Y KTB | 2.74% | ▲ 0.6 | ▼ 56.2 | ▼ 78.9 |
| Term Spread(bp) | 12.4 | ▼ 1.1 | ▲ 5.8 | ▲ 5.4 |
| Corp. AA- 3Y | 3.21% | ▲ 1.8 | ▼ 76.8 | ▼ 95.8 |
| Credit spread(bp) | 59.2 | ▲ 0.1 | ▼ 14.8 | ▼ 11.5 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.10% | ▼ 5.2 | ▼ 23.2 | ▼ 61.2 |
| 10Y US Treasury | 4.15% | ▼ 2.1 | ▲ 19.9 | ▼ 8.1 |
| Term Spread(bp) | 5.1 | ▲ 3.1 | ▲ 43.1 | ▲ 53.1 |
[Market Trends].
In November, US nonfarm payrolls came in at 227K, exceeding expectations, and the unemployment rate also came in higher than expected at 4.2%, indicating a recovery in the US job market, which is fueling expectations for interest rate cuts.
South Korea is experiencing political instability and interest rates are rising, especially with the impending vote on an impeachment motion against the president. These political factors are impacting interest rates and exchange rates.
[Top economic news and events].
Top U.S. News
The confirmation of a slowdown in employment in the US has led to a more than 80% chance of a December rate cut, which has pushed US Treasury yields lower.
Featured News
Political instability in South Korea has impacted the domestic bond market, with interest rates rising ahead of a vote on an impeachment motion against the president.
Other News and Events
News broke that the Assad regime in Syria has fallen, increasing political risk in the Middle East.
[Response Strategy].
In the short term, expectations of rate cuts could be positive for markets, but ongoing political uncertainty warrants a cautious approach. Given the instability in external markets, it would be advisable to maintain a wait-and-see approach to Treasuries and other fixed income.
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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Original Post: https://aicraft.life/korea-bond-market-daily-report-12-9-2024/
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