NH Amundi Says Korea Bonds Overprice 2-Plus BOK Hikes Through H1 2027

1 articles · Updated · Bloomberg · May 25

One- to two-year South Korean government bonds look cheap at current levels because markets are pricing too many Bank of Korea rate increases, NH Amundi said.
Swap markets are implying multiple quarter-point hikes through the first half of 2027, a path Executive Director Han Sooil called unrealistic.
That mismatch leaves the short end of the curve as the clearest buying opportunity in NH Amundi’s view, with yields elevated by overly hawkish policy expectations.

South Korea's central bank signals calm, but markets price in rate hikes. Which side is misreading the economic reality?

Is a top asset manager's 'buy' call on Korean bonds a rare opportunity or a classic value trap amid soaring yields?