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The positive developments seen on nuclear.....>

KOREA
KOREA: The positive developments seen on nuclear negotiations and bilateral
relations following the meeting between the leaders of the two Koreas has so far
failed to impact USDKRW, which continues to trade slightly higher on the day but
remains firmly in range at 1222.7.
- Interest rate swaps appear to be encouraged by the news, with the 2-year up
3bps to trade at 1.9150%, breaking back above its 55-dma. The 10-year swap is up
3.3bps as the curve steepens from YTD lows. 
- Given the continued rise in US rates, Korean yields would need to rise
significantly further to warrant won strength, at least based on correlations
between US-Korea real yield spreads and USDKRW. 

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