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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
- Despite the sharp upside retracement in LT bond yields in the CEE region amid surging inflation risks, Czech 10Y real yield still remains at historical lows (-7.1%).
- Czech Republic currently offers the second lowest 10Y real yield among the EM world after Turkey, where the inflation rate has surged to 54.4%.
- The CRBT decided to keep its 1W repo rate unchanged last week despite surging inflation and TRY weakness, mostly impacted by the Russia/Ukraine conflict.
- Despite the deceleration in PPI inflation in recent months, China (PPI-adjusted) offers the third lowest 10Y real yield (-6%) as LT bond yields keep trading at low levels due to the market uncertainty.
- At the top of the league, Indonesia remains the EM economy offering the highest 10Y real yield (+4.6%), shortly following by South Africa (+4.3%). (We leave Russia out of the league due to the pricing uncertainty).
- The chart below ranks the 10Y real yields among the most liquid EM economies, adjusted by CPI inflation.
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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