SocGen strategist Kiyong Seong says Bank of Korea Governor Shin signalled an
"indirect signal" at a press conference after a 25bp policy-rate increase that
the central bank may hike again in August. While Shin's comments were seen as
"genuinely hawkish", markets had been pricing a more aggressive outcome—e.g. a
one-off 50bp move or markedly tougher hawkish language. Seong warns that, given
the policy outlook's sensitivity to imminent growth and inflation releases, bond
investors may be quicker than usual to lock in gains ahead of key data.
