The intensity of capital flows to Korea was strong. This is helping push the SC FIRST flow intensity measure up sharply to 51% on 11 June from 31% on 4 June and signalling a pick-up in flow intensity to the average level of the past three months, says Standard Chartered.
The flows to Korea (largely to Monetary Stability Bills, or MSBs, rather than Korea Treasury Bonds) to the combined effect of growing expectations for a rate cut - delivered on 11 June - and the structural preference of the Korea-focused investor base to use MSBs rather than longer-duration instruments, adds Standard Chartered.
