M&G Backs Korean Bonds, Sees Too Many Rate Hikes Priced In

South Korean government bonds are expected to rally as the central bank is likely to slow its rate-hike pace versus market expectations, citing easing inflation pressures. The implied policy shift should be supportive for local yields and duration, with the move likely meaningful for the bond market.

Analysis

South Korean government bonds are expected to rally as the central bank is likely to slow its rate-hike pace versus market expectations, citing easing inflation pressures. The implied policy shift should be supportive for local yields and duration, with the move likely meaningful for the bond market.