CEMEA Rates Snapshot: Risk-On Buoys EM FI, Turkish Bonds Lead

EM bonds mostly firmer across the space owing to improved risk appetite post-FOMC. Turkish Bonds leading the pack with both local & USD bonds in the green, followed by SAGBs – also seeing good demand in duration.

• SA: Local curve trade bull flatter on the day: 10Y -3.8bp, 15Y -4.9bp, 30Y -5.3bp. 30Y eyeing 10.50 support to the downside while the 10Y still teeters on 9.20 support. Sentiment slowly returning to SAGBs after the rioting-induced rout.
• TURKEY: Turkish bonds seen outperforming today with local bonds firmer across the curve but outperforming in the belly: 3Y -7bp, 10Y -10bp. USD bonds snap muted trading conditions of the past few sessions, also gaining across the curve but notably in 3Y & 10Y yields (-5.8bp & -4.4bp)
• RUSSIA: Local bonds also firmer today with a slight bull flattening bias: 30Y -3bp while the remainder is 0-1bp lower. 10Y yields seem to have stalled somewhat around 6.80. USD bonds little changed but marginally firmer.