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With Korean stocks now in bear market...>

KOREA RATES
KOREA RATES: With Korean stocks now in bear market territory following today's
losses, down over 20% from their Jan highs, a rate hike is looking increasingly
unlikely.
-BOK Governor Lee Ju-yeol mentioned on Monday that the BOK would consider rate
hike at the next meeting on November 30 unless real economy shows big troubles.
Economists are also tilted towards a hike.  
- While the economy is unlikely to experience major weakness over such a short
period, 2-year Korean rate swaps are down 3.5bps on the day to fresh monthly
lows of 1.9175% as yields follow stocks lower. 
- The drop in stocks as well as oil prices has helped to push inflation
expectations lower, keeping upside pressure on real yields and making any rate
hike in the current environment fraught with risks. 

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