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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- As inflation continues to accelerate faster than what the market predicted in the CEE region, Poland, Hungary and CzechRepublic currently offer the lowest 10Y real yield among the EM world.
- For instance, the two charts below shows that Poland stands at the bottom of the 'League', with a 10Y real yield at -2.2% (adjusted by core CPI) and -2.6% (adjusted by headline CPI).
- Interestingly, China ranking changes significantly when we adjust by PPI (-1.2%, second worst place after Poland) instead pf core CPI (+2.9%, fourth best place).
- South Africa remains at the top of the League, with a 10Y real yield of 6.7% (Core CPI) and 6% (headline CPI), which partly explains the ZAR strength we have seen in the past year (i.e. ZARJPY up nearly 35% since its April 2020 low).
- In Brazil, the rise in political and economic uncertainty has been weighing on the BRL, which has remained weak against major crosses (i.e. EUR, JPY) despite the elevated 10Y real yield (6.3% adjusted by core and 3.1% adjusted by headline).
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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