HALISTER1: Korea, Singapore Bonds Gain; ING Keeps View to ‘Never Sell’ KTBs

Korea, Singapore Bonds Gain; ING Keeps View to ‘Never Sell’ KTBs

(Bloomberg) -- Yield on South Korea’s 10-yr govt bond slides 12 bps to 1.76%, which would be lowest close on record dating back to Dec. 2000; local markets were closed for past three days for public holidays.
  • “My advice to investors for long time has been never sell a KTB, and I continue to hold that view today” Tim Condon, head of Asian research at ING, says in interview, citing “close parallel” between Korean and Japanese economies. “The worries about growth and the Bank of Korea falling short of its inflation target mandate will keep its bias toward cutting rather than raising interest rates”
  • Singapore’s 10-yr bond yield slips 8 bps to 1.99%, according to data compiled by Bloomberg and central bank; yield hasn’t closed below 2.00% since Feb. 2015
  • When SGD strengthens, short-term rates will come off and that influence extends up curve, says Condon
  • USD/SGD drops as much as 0.4% to 1.3861, lowest since Oct. 23
  • 6-mo. swap-offer rate fell 5 bps to 1.55199% on Feb. 10
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Timothy Condon (ING Groep NV)

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