Korea's 1-Year Interest Rate Swap Falls 4.75bp to 3.46% on July 27 Amid Middle East De-escalation

According to Yonhapinfomax, South Korea's interest rate swap (IRS) rates plunged on July 27 following growing expectations of a U.S.-Iran ceasefire and declining international oil prices. The 1-year IRS fell 4.75 basis points to 3.46% as of 4:30 p.m. local time, while the 5-year contract dropped 9.25bp and the 10-year tumbled 10.25bp.

Credit risk swap (CRS) rates also declined broadly, with the 5- and 10-year segments falling 10bp each. Market participants noted stronger movements in Treasury futures and IRS contracts compared to cash bonds, reflecting heightened market reaction to Middle East developments.