A proprietary measure of daily same-day gross bond flows has been developed recently in Korea that analysts think provides earlier insight into portfolio flows to Korea than data from the Korean Financial Supervisory Service (FSS). The FSS data is available at the end of each day and covers Korean Treasury Bonds (KTBs), Monetary Stability Bonds (MSBs) issued by the Bank of Korea, and corporate and municipal bonds. Since the daily and monthly data match up, the daily data are used to avoid a one-month lag. Comparing the new measure with the current data shows little difference between the underlying dynamics of the two daily series, but potentially an earlier indication of flows from the new measure, which picked up substantial inflows after the 28 March FOMC meeting earlier than the FSS data did. New measure of Standard Chartered only captures KTB and MSB flows, but these are the dominant flows.
The material has been provided by InstaForex Company – www.instaforex.com