Korea Bond Market Daily Report: 1/22/2025
Korea Bond Market Daily Report
Treasury yields
| Treasury yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 3Y KTB | 2.58% | ▼ 4.4 | ▲ 7.2 | ▼ 72.8 |
| 10Y KTB | 2.82% | ▼ 5.0 | ▲ 6.9 | ▼ 60.4 |
| Term Spread(bp) | 23.9 | ▼ 0.6 | ▼ 0.3 | ▲ 12.4 |
| Corp. AA- 3Y | 3.23% | ▼ 4.1 | ▲ 3.0 | ▼ 83.1 |
| Credit spread(bp) | 64.8 | ▲ 0.3 | ▼ 4.2 | ▼ 10.3 |
US Treasury Yields
| US Treasury Yields | Recent | DoD (bp) | YTD (bp) | YoY (bp) |
|---|---|---|---|---|
| 2Y US Treasury | 4.28% | ▲ 0.6 | ▲ 2.6 | ▼ 11.4 |
| 10Y US Treasury | 4.58% | ▼ 3.4 | ▲ 0.6 | ▲ 42.6 |
| Term Spread(bp) | 30 | ▼ 4.0 | ▼ 2.0 | ▲ 54.0 |
[Market Trends].
Since President Trump's inauguration, expectations for economic and tax policy in the U.S. have been on the rise, and the impact of changes in tariffs and immigration policy on markets has been in the spotlight. In addition, volatility in the dollar index and Treasury rates has intensified.
Despite the uncertainty around policy changes, the Korean economy remains stable, and the Bank of Korea's monetary policy is expected to lower interest rates.
[Top economic news and events].
Top U.S. News
According to Redfin, home prices in major U.S. metros rose for the first time since May 2022, with a median price increase of 6.3%.
President Trump's first days in office have heralded tougher controls on immigration, policies that could impact the labor market.
Featured News
The Bank of Korea lowered its growth forecast for this year to 1.6-1.7% in its January economic outlook, which is cautionary given the uncertainty around employment and investment.
Domestic bond markets are experiencing volatility due to political instability in the U.S. and concerns about rising global interest rates, which is prompting a response.
Other News and Events
President Trump is set to announce a massive infrastructure policy.
Credit spreads are narrowing in South Korea's bond market, with the frequency of upward and downward revisions varying by sector.
[Response Strategy].
Given the global economic and political uncertainties, it is necessary to diversify investment strategies and thoroughly analyze and respond to various risk factors.
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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