Halister News

(Bloomberg) -- Yields on Korean bonds may rise if there is a fiscal stimulus after the elections, Rajeev De Mello, head of Asian fixed income at Schroder Investment Management says in Bloomberg TV interview.

• If there’s a fiscal boost, “as we could expect from the leading candidates,” yields are expected to rise a little bit
  • “I would expect the longer-maturity yields to rise somewhat”: De Mello
• Inflation in Korea is extremely low. So, there is no reason for the Bank of Korea to contemplate hiking rates. That will anchor the front end
• Yield on Korea 10-year government bond rose 3bps Monday to 2.24%
• NOTE: South Koreans head to the polls Tuesday, in a special election to replace ousted leader Park Geun-hye after months of turmoil; results expected around midnight