EM ASIA CREDIT: Korea Housing Finance: New USD deals priced

The AOFM sells A$1000mn of the 4.75% 21 April 2027 bond, #TB136:

• Average Yield (%): 4.3532 (prev. 3.5254)
• High Yield (%): 4.3550 (prev. 3.5275)
• Bid/Cover: 2.6630x (prev. 2.7625x)
• Allotted at Highest Accepted Yld as % of Bid at that Yld (%): 69.9 (prev. 86.4)
• Bidders 36 (prev. 32), successful 16 (prev. 13), allocated in full 7 (prev. 7)

The S&P(ESZ5) overnight range was 6844.00 - 6872.75, SPX closed -0.09%, Asia is currently trading around 6846. Risk has traded on the soft side overnight as treasuries continue to be sold as we approach the FOMC. This morning futures have opened a little lower, E-minis(S&P) -0.05%, NQZ5 -0.10%. On the day, all eyes will now be turning toward the FOMC, the market is hoping for confirmation of more cuts, the risk is a hawkish Fed. I suspect we tread water on a 6800 handle until then.

• The FOMC tomorrow morning will be important with the market pricing in rate cuts, how many dissenters are needed to put a dent in this bullish view ?
• Andreas Steno Larsen on X: “I remain convinced that 2026 will bring a significant expansion in broad money. A shift is underway from the Fed toward “private channels”
• The S&P 500 Index Average True Range(ATR) for the last 10 Trading days:  55 Points

Fig 1: S&P 500 Index Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P

• MNI: JAPAN NOV CORP GOODS PRICE INDEX +2.7% Y/Y; OCT +2.7%
• JAPAN NOV CORP GOODS PRICE INDEX +0.3% M/M; OCT +0.5%