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US/SK 2-Year Spreads Hold Widening Move


US short end yields continue to drop, while the prospect of rate hikes in Korea keeps yields elevated, the US/SK 2-Year spread holding near recent wides at 122bps. US yields dropped after ISM manufacturing data despite the print falling just short of expectations. In a note ING said: "Although yesterday's US macro data may not be much of an excuse for the latest bond market rally, the default for yields seems to be down unless there is a good reason for them to rise - and there wasn't." Markets await the BoK minutes as a catalyst for short term rates, while coronavirus case numbers have decreased from their peak.

  • Fig.1: US/SK 2-Year Spread

Source: Bloomberg

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