%South Korea Government Bond 10Y
KR-10Y
▼ NegativeMonetaryrelevance
Hawkish BOK hike and stable Fed support KRW, likely lowering Korean bond yields.
ING economists Deepali Bhargava and Lynn Song highlight a sharp 8% drop in USD/KRW earlier in the second quarter, driven by temporary flows such as Hynix ADR repatriation and National Pension Service hedging adjustments, alongside a hawkish Bank of Korea hike. They note that a stable Federal Reserve and sustained AI-related demand are now providing support for the South Korean won against the US dollar.
Hawkish BOK hike and stable Fed support KRW, likely lowering Korean bond yields.