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PIPELINE

Citigroup, Bank of NY Mellon Join List of Issuers

BOE APF PURCHASES

GBP1.147bln of medium-dated gilts with offer-to-cover of 2.24x

EGB SYNDICATION

Green BTP: Priced

EQUITY TECHS

E-MINI S&P (Z1): Key Resistance Exposed

EMERGING MARKETS
  • Indonesia is currently the place that offers the highest 10Y real yield among the EM world (5%), after inflation in South Africa surged to 4.4% in April (10Y real yield in SA is slightly lower at 4.85%).
  • Brazil 10Y real yield is still standing at 2.6% despite rising inflationary pressures.
  • China remains at the bottom of the league, currently offering a 10Y real yield of -3.7% (we use PPI for China instead of CPI as it shows stronger relationship with the 10Y yield).
  • Malaysia is now also offering a negative 10Y real yield of -1.5% after CPI inflation soared from 0.1% to 4.7% between February and April.
  • The CEE region remains at the bottom of the league with Poland offering the second lowest 10Y real yield among the EM world (-2.5%).
  • The chart below ranks the 10Y real yields among the most liquid EM economies, adjusted by headline CPI.

Source: Bloomberg/MNI

MNI London Bureau | +44 203-865-3850 | yvan.berthoux@marketnews.com
MNI London Bureau | +44 203-865-3850 | yvan.berthoux@marketnews.com