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The Bank of Korea is draining won liquidity through a base-rate hike while the government has drafted a sharply expanded 820.9 trillion won budget for next year, an unusual pairing of monetary tightening with fiscal stimulus. The government's framing is that rate policy targets financial stability and overall liquidity, while spending is a selective tool for households hurt by high rates and for future growth industries, but the combination still points to heavier Korea Treasury Bond supply against a tighter policy rate, a setup that pressures the long end of the KTB curve and complicates the USD/KRW and KOSPI valuation read. Watch the government bond issuance plan and the Bank of Korea's next guidance for confirmation: if bond supply lands above expectations while the policy rate stays restrictive, higher domestic yields and a firmer dollar-won can weigh on Korean risk assets and local crypto flows.
As a Macro signal, watch whether it changes price action, volatility, or flows around KRW=X, KOSPI.
Original Source: 연합인포맥스
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