Korea Bond Bulls Unfazed by Sharpest Selloff in Five Months
- 3-year bond yields may fall below 3% this year: DB Financial
- BOK to pause on interest-rate hikes this week: Survey
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The sharpest selloff in Korean bonds in five months isn’t denting the confidence of bond bulls, as they wager for a reversal in the coming months on bets the Bank of Korea may be heading for rate cuts amid signs of a slowing economy.
The yield on the nation’s three-year bond surged by more than 50 basis points in the last two weeks, the biggest jump since September, to 3.66% on Monday. That’s set to fall below 3% later this year on bets the BOK may cut rates twice in 2023 as falling house prices add to economic woes, according to DB Financial Investment Co. Shinhan Asset Management Co. also predicts bond gains.