TechBloomberg Tech2h ago
M&G Backs Korean Bonds, Sees Too Many Rate Hikes Priced
M&G Backs Korean Bonds, Sees Too Many Rate Hikes Priced In
TL;DRM&G expects South Korea's central bank to hike rates slower than markets predict, boosting bond prices.
Why it matters: Market mispricing creates arbitrage opportunities; signals broader shift in emerging market monetary policy expectations.
South Korean government bonds are set to rally as the central bank will likely defy market forecasts by slowing the pace of interest rate hikes as inflation pressures ease, according to M&G Investments.
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