Asia rates: Thoughts into the FOMC

Research evidence excerpt

Asia rates: Thoughts into the FOMC

Global Markets Research

17 June 2026Asia Insights

Rates - Asia ex-Japan

Research Analysts

Asia rates: Thoughts into the FOMC Asia Rates Strategy

Albert Leung - NIHK

Focus more on relative value, but maintain overall view to pay on dips. albert.leung1@nomura.com

+852 2252 1401

Nathan Sribalasundaram - NSL

• With rates moving lower after the US-Iran interim deal was announced, we see further nathan.sribalasundaram@nomura.com

potential downside as limited, with US data and equities still on an uptrend. We prefer +65 6433 9707

to focus on RV opportunities, as volatility around the first FOMC meeting under Warsh

Clair Gao, CFA - NIHK could be high. clair.gao@nomura.com

• We maintain a receive position in Korea (2yfwd5y NDIRS), where rates are trading +852 2252 1081

well above pre-war levels.

• In markets where central banks are perceived as potentially behind curve and/or rates

have retraced significantly from the highs, such as Taiwan, we see tactical pay

opportunities.

It is no surprise that global and Asia rates have come off following the US-Iran interim deal

announcement, but we believe conditions for a further significant rally are not yet in place.

Oil prices are likely to retain a geopolitical premium rather than returning to pre-war levels,

and we believe the recent strength in US data (three consecutive NFPs above 100k) and

the solid equity market performance should constrain any rally in US rates.

That said, we are at a critical juncture, with the first FOMC meeting under Warsh starting

in less than 24 hours and the risk/reward of a significant directional call into the event not

high. Thus, we prefer to focusmoreonrelativevalueopportunities but overall prefer to

pay on dips over the medium term.