Anticipated Bank of Korea Cuts May Keep Bond Yields Low
Dayeon Hong, multi-asset portfolio manager at Shinhan Asset Management Asia, discusses the recent moves by the Bank of Korea. Despite a surprise hold on rates, expectations for a rate cut linger due to weak growth projections. Hong believes that bond yields are likely to remain ‘pinned down’ as investors factor in these expectations. This situation creates opportunities for investors to secure more favorable yields as the market adjusts to potential changes in monetary policy. The insights provided by Hong emphasize the importance of staying informed on central bank actions that could impact fixed-income investments moving forward.