SOUTH KOREA: Country Wrap: Mortgage Demand Up in April
May-14 05:29
- Household loans from banks increased sharply last month due to the recent increase in housing transactions. The increase in mortgage loans also rose significantly from the previous month. According to the "April Financial Market Trends" released by the Bank of Korea on the 14th, household loans in the banking sector amounted to 1,150.1 trillion won last month, up 4.8 trillion won from the previous month. It increased by 5 trillion won from a year ago. Bank loans and household loans rose sharply from February (3.2 trillion won) and March (1.6 trillion won). (source MAEIL)
- Asia’s trans-Pacific shipping corridor—a critical artery linking China and North America—has once again been thrown into uncertainty. The protracted tariff war between the United States and China has already cut shipping volumes nearly in half and sent freight rates plummeting. But following the May. 12 decision by Washington and Beijing to enact a 90-day tariff truce, a surge in exports is expected to strain already limited vessel capacity. (source CHOSUN)
- The KOSPI was up +1.23% and on track to deliver three successive days of gains and is up over 10% year to date.
- The Won has had a quiet day hovering around 1,417.20 for most of the day.
- Bonds had a decent rally with the front end better bid. KTB 10YR 2.72%
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JGBS: Sharp Bear-Steepener Ahead Of Tomorrow's 20Y Supply
Apr-14 05:29
JGB futures are stronger, +8 compared to the settlement levels, sitting near the middle of today’s range.
- In the final report, Feb. industrial production was revised down to 2.3% m/m from 2.5%. Japan’s operating ratio fell to 104.1 in Feb. compared to 105.3 in the previous month.
- (MNI) The BoJ will manage monetary policy appropriately to achieve the 2% price target sustainably and stably, Governor Kazuo Ueda told lawmakers Monday. The BoJ will examine the future economy, prices and financial markets without precondition, he added.
- Cash US tsys are 2-3bps richer in today's Asia-Pac session. The US calendar is light this week, with the highlights being Retail Sales data and Fedspeak from Powell and Waller on Wednesday.
- Cash JGBs are flat to 11bps cheaper across benchmarks, with a steepener curve. The benchmark 20-year yield is 7.9bps higher at 2.407% ahead of tomorrow's supply. The current yield is 10-15bps higher than last month’s auction level.
- The swap curve has twist-steepened, with rates 2bps lower to 5bps higher. Swap spreads are mixed.
- Tomorrow, the local calendar will be empty apart from 20-year supply.
LOOK AHEAD: UK Timeline of Key Events (BST Times)
Apr-14 05:23
| Date | UK | Period | Event |
| 15-Apr | 0001 | Mar | BRC-KPMG Shop Sales Monitor |
| 15-Apr | 0700 | Feb/Mar | Labour Market Survey |
| 16-Apr | 0700 | Mar | Consumer inflation report |
| 23-Apr | 0001 | Mar | Brightmine pay deals for whole economy |
| 23-Apr | 0700 | Mar | Public Sector Finances |
| 23-Apr | 0730 | DMO remit revision following FY24/25 CGNCR | |
| 23-Apr | 0930 | Apr | S&P Global Manufacturing PMI flash |
| 23-Apr | 0930 | Apr | S&P Global Services PMI flash |
| 23-Apr | 0930 | Apr | S&P Global Composite PMI flash |
| 23-Apr | 1130 | BOE's Pill speech at University of Leeds | |
| 23-Apr | 1815 | BOE's Bailey at Institute of International Finance | |
| 23-Apr | 1900 | BOE's Breeden on Monetary Policy and Financial Stability | |
| 24-Apr | 1100 | Apr | CBI Industrial Trends |
| 25-Apr | 0001 | Apr | Gfk Monthly Consumer Confidence |
| 25-Apr | 0700 | Mar | Retail Sales |
| 25-Apr | 2015 | BOE's Greene on Inflation, growth and moentary policy | |
| 28-Apr | 1100 | Apr | CBI Distributive Trades |
GBPUSD TECHS: Key Resistance Remains Exposed
Apr-14 05:20
- RES 4: 1.3305 High Oct 2 ‘24
- RES 3: 1.3274 High Oct 3 ‘24
- RES 2: 1.3207 High Apr 3 and the bull trigger
- RES 1: 1.3145 High Apr 11
- PRICE: 1.3104 @ 06:19 BST Apr 14
- SUP 1: 1.2907/1.2709 20-day EMA / Low Apr 7 and a bear trigger
- SUP 2: 1.2662 2.0% 10-dma envelope
- SUP 3: 1.2654 50.0% retracement of the Jan 13 - Apr 3 bull cycle
- SUP 4: 1.2559 Low Feb 28
GBPUSD maintains a bullish tone and the pair is holding on to last week’s gains. The trend condition remains bullish and recent weakness appears to have been a correction. Moving average studies remain in a bull mode position that highlights a dominant uptrend. An extension higher would open key resistance and the bull trigger is 1.3207, the Apr 3 high. Key support has been defined at 1.2709, the Apr 7 low.
