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CEMEA Rates Snapshot: Reprieve for SA & Turkey, Russia Slides on CPI, Geopolitics

EMERGING MARKETS

Some slight reprieve seen in SAGBs and Turkish rates, while Russia diverges the trend following higher weekly CPI and ahead of strategic stability talks with the US.


  • SA: SAGBs trade bull flatter on the day in what looks like some profit-taking around key resistance: 2Y -2.6bp, 5Y -2bp, 10Y -3.4bp, 15Y -4.6bp, 30Y -3.3bp. 10Y yields have stalled around 9.60 & upside momentum in 30Y yields has slowed around 10.80. Trends still remain higher until 9.50 & 10.70 give way.
  • RUSSIA: Russian OFZs are lagging the pack, bear flattening in at the front end following persistently higher weekly CPI. General risk aversion ahead of US talks also seeing yields lifting across the curve. 2Y +5bp, 3Y +3bp, 5Y +2bp, 7Y +3bp, 10Y +2bp, 15Y -2bp.
  • TURKEY: Both TurkGBs and USD bonds catching a bid today with the latter outperforming. TurkGBs stand bull flatter -3-7bp lower in the 7-10Y section of the curve. Meanwhile, the USD curve holds -3.4-10.3bp lower across the breadth. Outperformance concentrated in 3-7Y tenors.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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