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Free AccessKorean interest rate swaps are back on the....>
KOREA: Korean interest rate swaps are back on the rise, supported by the
stabilization in Korean stocks, which, having held the 2000 level look ripe for
a bullish reversal.
- The 2-year swap trades at 1.8570%, up 1bps today as the recovery off the
Monday's lows at 1.8% continues. However, the curve continues to flatten, with
the 2s-10s hitting fresh cycle lows today at 18.3bps.
- The flattening of the curve is yet another negative force for the won as
US-Korea average yield spreads continue to head to new highs. The 10-year spread
is now at a new high of 116.9bps, with the real spread at 19.2bps.
- Historical correlations between real yield spreads and USDKRW suggest the
pair should be trading north of 1200.
To read the full story
Sign up now for free trial access to this content.
Please enter your details below.
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.