Post #28660

(Bloomberg) -- The KRW rates curve should bull-steepen, according to Goldman Sachs, which also pushed back its forecast for a Bank of Korea rate cut to the first quarter of next year. With expectations for one more BOK rate cut in Q1 and the Fed continuing to ease through June, the KRW rates market selloff looks overdone, providing an opportunity to enter a receive trade, according to strategists including Danny Suwanapruti Goldman recommends receiving KRW 2Y IRS The case for maintaining an easing stance is supported by signs of housing stabilization and rising financial stress among smaller firms and non-bank lenders Goldman anticipates a slowdown in Q4, as the effects of the stimulus fades. Gap between cut to hike is usually around 14 months; Goldman doesn’t expect a BOK hike in 2026