Bond market on alert as KOSPI volatility widens; rate outlook 3.25%~3.75%
As the KOSPI has shown significant volatility recently, bond market participants are closely watching the possibility of changes in risk appetite. Amid rising forecasts for domestic gross domestic product (GDP) growth due to the semiconductor boom, the rate-hike cycle has not yet begun, and next year’s terminal rate is forecast at 3.25% to 3.75%.
As the KOSPI has shown significant volatility recently, bond market participants are closely watching the possibility of changes in risk appetite going forward. Attention is focused on whether shifts in investor sentiment will alter bond flows.
The market believes that conditions remain unfavorable for bonds from a fundamental perspective. The semiconductor industry’s strong performance is cited as the reason, as it is driving up forecasts for domestic gross domestic product (GDP) growth.
The rate-hike cycle has not yet begun. Forecasts indicate that the terminal rate to be reached next year will be between 3.25% and 3.75%.
The bond market is closely watching whether the risk appetite that formed alongside the KOSPI’s strength will change. Bond market participants are monitoring changes in positions and supply-demand conditions as market volatility increases.
Some believe that increased volatility in the stock market could affect demand for bonds and interest-rate expectations. The market will continue to focus on the interest-rate path and macroeconomic indicators.
The interaction between the bond and stock markets, along with the growth outlook centered on semiconductors, is being cited as a key factor in future fluctuations in interest rates and asset prices.
Sources: 연합인포맥스
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.