Standard Chartered Bank: Korea Treasury Bonds, swap rates to outperform further

Quotes from Standard Chartered Bank

• We expect Korea Treasury Bonds (KTBs) and swap rates to outperform further on the expected rate cut in Q2-2015, uncertain economic growth, and constructive demand from local and foreign investors.
• Meanwhile, we see upside and curvesteepening risk from a potential unanimous vote to keep the rate on hold at the 12 March meeting.
• We maintain our Underweight short-term FX weighting on the Korean won (KRW)