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Korean rates remain near their daily....>

KOREA RATES
KOREA RATES: Korean rates remain near their daily lows with the 2-year down
1.5bps at 1.7825% marking fresh cycle lows. 
- Dovish comments by Governor Lee Ju-yeol are weighing after he noted that
inflation is likely to be less than estimated and the Fed's stance may have a
bigger impact on monetary policy than in the past. This follows comments made on
Dec 31 that there's a need to maintain accommodative monetary policy. 
- The short end of the swap curve is becoming increasingly inverted with 11.5bps
now separating the 6 month from the 2 year tenor as rate cut bets are rising.
Breakevens hit fresh cycle lows yesterday keeping upside pressure on real
yields. 
- 2-year swap spreads between US and Korea have widened back out slightly
following recent weeks of narrowing, with the spread last at 86.5bps.

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