SOUTH KOREA: SK STIR - ST Rates on the Move Again

* O/N have stabilized after a moderate move higher late last week. * 3M CD rates premium to the base rate have stablized at +21bps (from +16bps at the end of last week) * 3M forwards have trended back towards base rate, having falling back in what looked more of a technical move late last week. * In the period post the last BOK meeting, the 1Y1Yr fwd did very little however at the back end of last week it tracked higher, before consolidating at current levels * The 1Y1Y prior to the BOK meeting was 3.97% - currently at at 4.22% (with the YTD high of 4.40%) * During the last rate hike cycle, the 1Y1Yr peaked at 4.80% in September 2022 - 3 months ahead of the final rate hike in Jan 2023 to 3.50% * Following the BOK meeting, the pressure came out of the upward climb in swap spreads given the perceived removal of the hawkish outlook. We reached highest levels since June in mid September following the BOK outlook, which could be a signal for future moves. Fig1: KRW Fwd 1Yr1Yr swap Finance LP / MNI