USDKRW remains above the 1140 level after.....>

KOREA: USDKRW remains above the 1140 level after opening just shy of the YTD

high seen on Oct 11. The pair last trades at 1141.0 as the won continues to hold

up relatively well despite continued fresh lows in the Kospi and rate markets. 

- The Kospi remains below the 2000 level which gave way yesterday, while 2-year

interest rate swaps remain below their Sep lows, currently trading at 1.8075%,

after dropping 9bps to 1.80% yesterday.  

- US-Korea 2-year yield spreads remain at new cycle highs of 122bps, while real

yield spreads (adjusted for long-term breakevens) also continue to widen,

currently at a record high of 26bps.

- Relatively stability in global credit markets is helping the won remain stable

in the face of deteriorating equities and yield spreads, but pressure is

building and a break above the Oct 11 high would be a bullish signal for USDKRW.