CEMEA Rates Snapshot: Russia Leads Post-SONA, SAGBs Bull Steepen

Mixed sentiment across EM FI today, with Russia leading the way following a less aggressive SONA meeting than was anticipated, while the curves steepen in SA & Turkey.

• SA: A soft CPI print precipitated a bid at the front end of the curve today (2Y -8.8bp) while the rest of the curve steepened +1.4-1.8bp amid questionable risk conditions.
  • 2Y now trades below 4.80, while 10Y remains begged above 9.00.
• RUSSIA: Local rates reversed early weakness following Putin's Address which failed to deliver details on Ukraine as many were expecting.
  • Locals trade 2-3bp in the green across the curve, while the USD curve trades -3bp bull flatter at the long end.
• TURKEY: Local & USD rates maintain their weakening bias, with locals more offered than their USD equivalents.
  • Local curve ends the day +15-16bp bear steeper as concerns regarding the CBRT's use of FX reserves dented TRY sentiment. USD curve bear flattened from the front end +7.3bp.