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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
KOREA RATES
- The South Korean yield curve has twist steepened in the past month, the country grapples with a resurgence in coronavirus which threatens to dampen economic activity, but the BoK maintain their hawkish rhetoric and are optimistic on growth.
- Fig.1: Korea Yield Curve Now v 1 Month
Source: Bloomberg
- Bank of America expect a rate hike in October 2021: "Rising KRW rates have steepened $KRW forward curve. The strong BoK rhetoric following the July meeting resulted in KRW 1y1y NDIRS to sell-off 11bp as the market reprices the increased prospect of a faster BoK hiking cycle. Our economists maintain their call for the first BoK hike to materialize in October 2021. The strong sell-off in local rates also resulted in the front-end of the FX forward curve to steepen."
- They add "we believe the BoK can turn further hawkish as we approach the next meeting on 26 August. Risks to the trade are a delay in the BoK hiking cycle, faster resolution to the US debt ceiling, and a widening of Korea cross-currency basis".
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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