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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.
ASIA RATES
South Korean Sovereign Bond curve has bull-steepened, with yields currently 2-4bps lower after today’s BoK Policy Decision. Yields are however 2-4bps higher than session lows, set soon after the decision.
- The central bank kept its key policy rate unchanged at 3.5% for the 10th consecutive meeting as expected by all 23 economists surveyed.
- A slightly dovish undertone from the BoK and not a great deal of concern around recent FX weakness.
- Importantly, BoK Governor Rhee noted the central bank can move independently of the Fed decisions.
- Still, the inflation trajectory is key to the rates outlook. Governor Rhee said the board is open to a rate cut if consumer price inflation slows in the second half of 2024.
- The 2- and 10-year yields are currently 3.45% and 3.55% respectively after reaching year-to-date highs yesterday as the local market processed the sell-off in US tsys following this week’s hotter-than-anticipated US CPI data.
- China Government Bonds have richened again, with benchmark yields flat to 3bps lower. The 5-year has outperformed slightly, pushing to a fresh cycle low of 2.107% and the lowest level since 2020.
Figure 1: 5-Year China Government Bond (%)
Source: MNI – Market News / Bloomberg
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.
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