USDKRW has recovered all of the losses seen...>

KOREA: USDKRW has recovered all of the losses seen earlier this week, closing

the gap left at the Monday open to trade at 1119.0, up ~0.5% on the day. KRWJPY

meanwhile has broken lower, losing almost 1% to suggest a topping pattern is in

progress. 

- The Kospi is down 1.6% as it follows Us futures lower, breaking below up

trendline support from the Oct 30 lows. This is putting intense downward

pressure on Korean rates, with the 2-year down 5.8bps at 1.84% and the 10-year

down 7bps at 1.86%. The curve is inverted from 6 months out to 9 years. 

- The re-widening of US-Korea real yield spreads strongly points to further

upside in USDKRW which should also benefit from any further risk-off sentiment.