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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
- In the past year, we have seen that the deep negative real yields have been weighing on some EM currencies, particularly in the CEE region (including), where inflationary pressures have been extremely elevated following the Ukraine war shock.
- Turkey remains the country with the lowest 10Y real yields, currently standing at nearly -60% with a CPI inflation of 79%.
- TRY weakness keeps de-anchoring inflation expectations; economic data showed this morning that the 1Y expected inflation has risen to 40.2% in July, up from 38% the previous month.
- Czech Republic is the country offering the second lowest 10Y real yield among the EM world, currently standing at -11.5%.
- We can notice that Hungary is in the middle on the table as price caps implemented by the government have kept CPI inflation at 'low' levels. According to the Hungarian Cabinet, CPI inflation should be 4 to 5ppt higher.
- This morning, economic data showed that Hungary CPI accelerated to 11.7% in June (vs. 11.5% exp.), up from 10.7% the previous month.
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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