Korea Bond Market Daily Report: 1/21/2025
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.62% | ▲ 3.5 | ▲ 11.6 | ▼ 68.4 |
| 10Y KTB | 2.87% | ▲ 5.5 | ▲ 11.9 | ▼ 55.4 |
| Term Spread(bp) | 24.5 | ▲ 2.0 | ▲ 0.3 | ▲ 13.0 |
| Corp. AA- 3Y | 3.27% | ▲ 2.7 | ▲ 7.1 | ▼ 79.0 |
| Credit spread(bp) | 64.5 | ▼ 0.8 | ▼ 4.5 | ▼ 10.6 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.28% | ▲ 5.3 | ▲ 3.3 | ▼ 10.7 |
| 10Y US Treasury | 4.62% | ▲ 1.3 | ▲ 5.3 | ▲ 47.3 |
| Term Spread(bp) | 34 | ▼ 4.0 | ▲ 2.0 | ▲ 58.0 |
[Market Trends].
The Bank of Korea kept its key interest rate unchanged and lowered its 2023 real gross domestic product (GDP) growth forecast to 1.6-1.7% from 1.9%.
In the U.S. markets, bond markets were closed for Martin Luther King Day, and interest rates on U.S. Treasury bonds remain similar.
[Top economic news and events].
Top U.S. News
Donald Trump was sworn in as the 47th President of the United States, directed his cabinet to tackle record inflation, and declared a national energy emergency.
President Trump did not issue an executive order to impose tariffs, causing the dollar index to drop significantly.
Featured News
The Bank of Korea announced that economic growth this year will be revised downward to 1.6-1.7%, with weaker-than-expected growth in consumption and construction investment.
In the first quarter of 2024, South Korea's growth rate will be hit by political uncertainty and a slowdown in construction.
Other News and Events
South Korea's 10-year government bond yields rose to 2.87%, pushing domestic rates higher.
The 10-year US Treasury rate remains at 4.63%, and the FOMC's decision will be crucial going forward.
[Response Strategy].
It is necessary to closely monitor future market trends and develop an interest rate response strategy. Adjustments to investment portfolios are required to account for policy changes and volatility in economic indicators.
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-1-21-2025/
Comments
Post a Comment