The Korean Kospi has lost its grip on the.....>

KOREA: The Korean Kospi has lost its grip on the 2100 level and slipped below

its 21-dma as the rally off the lows loses steam. 

- Korean bond futures are rallying as they continue to outperform globally. The

10-year future trades up 25 ticks at 124.68, honing in on the Oct 28 high at

125.30. 

- 2-year swaps are down 1.5bps at 1.8725 while the 10-year is down 2bps causing

the curve to fall to fresh cycle lows at 18.75bps.

- Rising US rates on the back of further Fed hiking expectations have seen

US-Korea yield spreads hit new cycle highs in both nominal and real terms,

adding to the fundamental upside pressure on USDKRW. The pair currently trades

just north of its 55-dma at 1125.8 and a close here would suggest a base is

forming keeping the broader uptrend intact.