CEEMEA Rates Snapshot: Mixed to Firmer Ahead of Central Bank Meetings

EM rates mixed to firmer across the board, but may give back early gains to rising UST yields. Choppy sentiment keeping markets tentative ahead of Wednesday's FOMC and key local rates decisions in Turkey & Russia.

• TURKEY: Local yields easing higher across the curve with a bear steepening bias: 10Y most offered -15bp. USD curve better bid, holding 5.5-7.6bp lower across the breadth. 10Y outperforming -11.1bp.
• SA: Local bonds holding onto early gains, but being tempered by rising USTs. Curve still bull flattening, but 2y has closed the gap somewhat now -6.5bp. 10Y -7.1bp, 30Y -3.9bp.
• RUSSIA: Local yields continue to rise on expedited rate hike expectations for 2Q21 with the front end (2Y) lifting 6bp although rumours of 125bp in hikes for 2021 seems slightly overblown. USD curve bull flattening marginally.
• POLAND: Local rates firmer across the curve, but slightly more bid in the belly: 5Y -3.3bp, 7Y -4.0bp, while Hungary is closed for a national holiday.