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Korean interest rate swaps are back on the....>

KOREA
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.  

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