- Korea’s 2Yr Government bond opened weaker at first only to turn around rapidly once trading was fully under way.
- The KTB 2YR is down -8bps in yield at 2.770% whilst the longer dated bonds at 2-3bps higher in yield.
- Given the short end is most reactive to monetary policy, the potential political turmoil may spell problems for the 2025 budget approval and may result in monetary policy activity being brought forward in 2025.
SOUTH KOREA: Bond Market Reacting Quickly to the Political Environment.
Last updated at:Dec-04 00:52By: Jamie Grant
South Korea
- Korea’s 2Yr Government bond opened weaker at first only to turn around rapidly once trading was fully under way.
- The KTB 2YR is down -8bps in yield at 2.770% whilst the longer dated bonds at 2-3bps higher in yield.
- Given the short end is most reactive to monetary policy, the potential political turmoil may spell problems for the 2025 budget approval and may result in monetary policy activity being brought forward in 2025.
