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Korean 10-year bonds trade at their.....>

KOREA RATES
KOREA RATES: Korean 10-year bonds trade at their daily lows at 124.94 after
failing once again to consolidate gains above 125. The space has largely
shrugged off global equity weakness and the crash in crude, trading weaker in
line with the US. Korea-US 10-year spread sits at -86.7bps.
- Interest rate swaps have edged higher in early trading up 0.6bps at 1.8725% as
the short-term correlation with US swaps increases. 
- Breakevens edged down again yesterday putting further upside pressure on real
yields, with the 2-year swap trading near 3-month highs after adjusting for
inflation expectations, reducing the likelihood of a BOK rate hike this month. 
- Real yields partially reflect the rise in Korean default risk as the 10-year
CDS spread trades at 4-month highs around 70bps. 

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