IRS Rates Rise—Foreign Offers Dominate Short-Term Segment

(Seoul=Yonhap Infomax) Jee Hyun Son—Interest rate swap (IRS) rates climbed in the Seoul bond market on the 20th.

According to market data as of 16:43 KST, the 1-year IRS rate rose 0.75 basis points (bp) from the previous session to 2.7225%.

The 2-year and 3-year tenors increased by 2.25bp and 3.00bp, respectively.

The 5-year IRS advanced 4.50bp to 3.0175%, while the 10-year also gained 4.50bp to 3.1550%.

A dealer at a local securities firm noted, "While swaps are generally tracking futures, foreign investors showed notable buying interest in the 6-month to 2-year segment."

Cross-currency swap (CRS) rates based on the Secured Overnight Financing Rate (SOFR) mostly declined.

The 1-year CRS (SOFR) fell 1.00bp to 2.1000%.

The 5-year dropped 3.50bp to 2.5750%, while the 10-year rose 3.00bp to 2.6350%.

The swap basis inversion—the spread between CRS (SOFR) and IRS—widened further.

The 1-year inversion expanded by 1.75bp to -62.25bp, and the 5-year inversion widened by 8.00bp to -44.25bp.

jhson1@yna.co.kr

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