SOUTH KOREA: Country Wrap: KTBs into the WGBI
Apr-14 05:16
- South Korean smartphone and personal computer makers are staying cautious as unpredictable U.S. tariff policies increase uncertainty around their future production strategies. On Friday, U.S. administration exempted smartphones, computers and some other electronic devices from country-specific reciprocal tariffs, including the 125 percent levies imposed on Chinese imports. (source Yonhap)
- South Korean government bonds have secured final approval for inclusion in the FTSE World Government Bond Index (WGBI), one of the world’s top three sovereign debt benchmarks, although the entry date has been postponed to April 2026, index provider FTSE Russell said. The WGBI is one of the most widely used benchmarks in the world with approximately $3tn of funds managed relative to it. (source Chosun )
- The Kospi had a solid day rising +0.91% in a week where the Central Bank meets.
- The Won was one of the few regional currencies that fell today, down -0.5% to 1,427.62 on rate cut expectations from the BOK.
- Bonds were mixed across the curve with the 10YR at 2.71%
Want to read more?
Find more articles and bullets on these widgets:
Historical bullets
FED: March Economic Projections: Higher Inflation, Weaker Growth, Same Rates
Mar-14 21:28
The MNI Markets Team’s expectations for the updated Economic Projections in the March SEP are below.
- The unemployment rate is likely to rise slightly for 2025 alongside a downgrade in GDP growth, while the 2025 core and headline PCE inflation projections are set to rise again. Changes to later years will likely be limited, however.
- More detail on the shift in Fed funds rate medians is in our meeting preview - we will add more color next week.
FED: Market Pricing Nearly 3 2025 Cuts As Conditions Tighten
Mar-14 21:25
Amid rising government policy uncertainty, sentiment among businesses and consumers has fallen sharply since the start of the year, while equities and the dollar have reversed their post-election rise. Overall, financial conditions have tightened, even if stress is not yet mounting, e.g. no major widening of credit spreads (the accompanying chart shows the Fed’s financial conditions impulse index but only through January).
- Combined with growth fears, this has affected expectations for the Fed’s rate path, with around 18bp more cuts expected in 2025 compared with what was seen after the January FOMC. 65bp of cuts are priced for the year as a whole. 2025 cut pricing reached 71bp before the February inflation data and 76bp before the February payrolls report.
- A rate cut is seen with near zero probability for March’s meeting, but the first full cut is just about priced for June, with a second nearly priced by September.
- Chair Powell has no reason to endorse or refute these expectations – he’s likely to be happy with a press conference that ends with little discernable change in pricing.
CANADA'S CARNEY ANNOUNCES ELIMINATION OF THE CONSUMER CARBON TAX
Mar-14 21:17
- CANADA'S CARNEY ANNOUNCES ELIMINATION OF THE CONSUMER CARBON TAX
