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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
- CEE (including Turkey) remains the region with the lowest 10Y real yields amid elevated inflationary pressures, which therefore continue to weigh on the domestic currencies.
- Turkey continues to stay at the bottom of the ‘League’, with a 10Y real yield of -53%; as a result, the TRY has been the worst performing currency this year among the EM world, down nearly 23% against the US Dollar.
- Czech is the EM country with the second lowest 10Y real yield (-10.5%); in addition the pivoting board (new Governor Michl and MPC members seem more ‘dovish’) leave the koruna vulnerable in the medium term against major currencies (particularly USD).
- At the top, South Africa remains the economy where the 10Y real yield is the highest despite the rise in inflation in recent months, currently standing at 5%.
- Elevated real yields combined with the record CA surpluses had been strong drivers of ZAR previously; however, the recent risk off sentiment and the CNY weakness have left the ‘risk on’ currency vulnerable in recent months.
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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