Korean rate markets are showing some....>

KOREA RATES: Korean rate markets are showing some upside momentum today as the

improving global risk climate finally feeds through into the space. The 2-year

trades up 1.75bps at the key 1.80% level which marks prior range lows. A break

above here would strengthen the case for a bullish reversal. 

- The 10-year swap is up 2bps at 1.8225% as bulls look to take out 1.85% to

trigger a bullish reversal. 

- Should the positive correlation between stocks and rates resume we could see a

burst higher in Korean rates, with the long end particularly susceptible given

how flat the curve is. A further recovery in oil prices adds to upside risks.   

- The BOK meets next week and although a hold is widely expected, any mention of

the improved global financial backdrop could put upside pressure on the space.