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Korean bond futures are extending.......>

KOREA RATES
KOREA RATES: Korean bond futures are extending their gains today in sympathy
with US futures and the flash crash in global stocks.
- The 2-year interest rate swaps are down 2bps, almost completely erasing the
rise following the Nov 30 BOK hike. 10-year swaps have smashed to new ytd lows,
losing another 2.8bps to 1.9025%
- The swap curve is now flat from 6 months to 9 years suggesting that traders
are do not expect the BOK to extend its hiking cycle into next year.
- Korea-US rate spreads are re-widening this week, in spite of the rise in
Korean CDS spreads. This is negative mix from the perspective of the Korean won.

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