Korean bond rates most sensitive to changing US yields in emerging Asian markets
4 Articles
4 Articles
Korean bond rates most sensitive to changing US yields in emerging Asian markets
Korean interest rates are highly sensitive to movements in U.S. yields as markets anticipate a quick response by the Bank of Korea (BOK), pricing that expectation into Korean rates before the central bank actually makes a move, a new BOK study showed Sunday. The finding helps explain why Korean bond yields tend to move closely with their U.S. counterparts even when the two economies seem to be heading in different directions. That sensitivity ha…
(Seoul = Yonhap News) Reporter Han Ji-hoon = The synchronization phenomenon, where long-term interest rates in Korea and the United States move in the same direction, indicates that both countries [share] external shocks such as global inflation...
The core factor behind the synchronization phenomenon, where Korean interest rates rise in tandem with U.S. rates, has been analyzed to be the shock of global inflation (sustained price increases across the economy), such as the surge in international oil prices. On the 20th, the Bank of Korea Economic Research Institute [published] ‘Analysis of the Synchronization Phenomenon of Long-term Interest Rates between Korea and the U.S.’ (co-authored b…
The Bank of Korea has analyzed that 41% of the synchronization phenomenon in which long-term government bond yields in Korea and the United States move in the same direction is due to global inflation.
Coverage Details
Bias Distribution
- 67% of the sources lean Left
Factuality
To view factuality data please Upgrade to Premium
