[3-Min Brief] Why Invest in Stocks When US Treasury Bonds Yield 5%?

[3-Min Brief 3-Second Summary]
US Treasury Yields Threaten Soft Landing
European Housing Prices Fall for First Time in 9 Years
Seoul Jeonse Shortage Despite Moving Season

■ Soaring US Treasury Yields... 10-Year Nears 5% (Comprehensive)
○ Surpassed 4.8% in New York market... 30-year yield also reached 4.93%
○ Fed's prolonged high interest rate impact... Ray Dalio says "Rates will hit 5%"
☞Read article: https://m.asiae.co.kr/article/2023100409205829471
※Typical bond-stock relationship: When the safe asset US Treasury yields rise, the relative attractiveness of risk assets like stocks decreases

■ KEPCO President: "Electricity rates must be raised by 25.9 won... Government must make a decision"
○ President Kim Dong-cheol emphasized "normalization of electricity rates" at his first press briefing
○ Warned that the longer the increase is delayed, the heavier the burden on the national economy
☞Read article: https://m.asiae.co.kr/article/2023100415203531016

■ Intel to split business units and go public... "Rebuilding semiconductor kingdom"
○ Plans to spin off and list the Programmable Solutions Group (PSG) business unit
○ CEO Pat Gelsinger vows to "regain past glory" by challenging advanced process technology
☞Read article: https://m.asiae.co.kr/article/2023100411243589572

■ European house prices fall for first time in 9 years... Deepening shadow of recession
○ Eurozone housing prices fell 1.7% year-on-year in Q2
○ Germany, Europe’s largest economic engine, dropped nearly 10%
☞Read article: https://m.asiae.co.kr/article/2023100410323829029

■ US government imposes first-ever 'space debris' fine... Space industry faces crisis
○ Over 700,000 pieces of debris threatening space safety... Regulations expected to intensify
○ Expected to have significant impact on the actively investing space industry sector
☞Read article: https://m.asiae.co.kr/article/2023100410011728128

○ New York stock market rises on slower private employment and falling yields... Dow up 0.4%
○ Despite employment slowdown, rate cut possibility remains low
○ "For the stock rally to resume, the long-term Treasury yield uptrend needs to reverse"

☞Read article: https://m.asiae.co.kr/article/2023100505524669834

○ Autumn moving season approaching, but Seoul apartment Jeonse listings are decreasing
○ Jeonse fraud and high interest rates reduce move-in supply, signaling rising Jeonse prices
☞Read article: https://m.asiae.co.kr/article/2023100413461901832

○ Former CNN anchor journalist resigns after 6 years ahead of next year’s US presidential election
○ Meta’s move to distance from news amid news usage fee controversies seen as extended trend
○ NYT suggests Meta’s priorities indicate changes in relationships with news organizations
☞Read article: https://m.asiae.co.kr/article/2023100410424495408

○ Domestic
- Doosan Robotics IPO price 26,000 won

○ Domestic

- Purit on 5th-6th

- 1st priority subscription for 'e-Pyeonhansesang Dapsimni Artefore' apartments in Dongdaemun-gu, Seoul

- 1st priority subscription for 'e-Pyeonhansesang Geomdan Wellcounty' apartments in Seo-gu, Incheon

- 1st priority subscription for Gangneung Xi Rene The Ocean apartments in Gangneung-si, Gangwon

○ Overseas

- 21:30 US Initial Jobless Claims
- 18:45 Eurozone Lane ECB Economist Speech
- 22:00 US Federal Open Market Committee member Mester Speech

◎ One-line Comment

If the number of people filing for unemployment benefits increases, it can lead to reduced household consumption and decreased corporate investment, so initial jobless claims are considered both a coincident and leading economic indicator.

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