Korean rates are lower across the.......>

KOREA RATES: Korean rates are lower across the board today as the strong opening

gain in the Kospi is partially given back. 

- 2-year swaps sit at 1.9740%, down 1.4bps on the day having failed to recover

the 2.0% level yesterday. The 10-year is down 1.8ps, extending the weekly loss

to 10bps. The 2s-10s curve now sits at just 20.3bps, testing its October lows. 

- Traders have warmed to the idea that the BOK will hike before year end, with

economists split over whether it will come at tomorrow's meeting or not. 

- Real yields have recovered following the recent drop in breakevens but the

10-year real yield remains near 18-month lows below 1.0%, which suggests the

BOK's policy is becoming increasingly loose amid the backdrop of rising oil

prices and the tightening US Fed.