CEMEA Rates Snapshot: SAGBs Buck the Weaker Trend, Putin Soothes Energy Panic

CEMEA rates still notably under pressure, save for duration in SAGBs which are seen trading in the green in the back end of the curve. Risk sentiment flipped to being more broadly supportive following comments on energy markets stabilisation from Putin with ZAR, TRY & RUB paring early weakness.

• SA: SAGBs trade mixed with the curve flattening from both ends in a marginal net bear flattening: 2Y +6.8bp, 15Y -4.1bp, 40Y -5.7bp. 10Y stabilising around 9.90, while 30Y yields have pulled back below 11.00. 5Y CDS also retracing some upside
• TURKEY: TurkGBs trade weaker across the curve with the bear steepening bias holding. 5-10Y yields stand +8-17bp higher, while USD bonds hold +3-4.6bp higher across the breadth with the 10Y most offered.
  • TRY turned tail at 8.9366 to retrace most of today's upside but still stands +0.26% higher on the day around 8.895.
• RUSSIA: OFZs remain under robust selling pressure going into CPI data this afternoon with the curve trading bear flatter. 2-5Y yields stand +4-8p higher on the day, while the rest of the curve has risen +2-4bp.
  • Russia's 5Y CDS has been the most well behaved of the three – trading mostly flat while Turkey & SA are up +4.2bp & 5.1bp respectively. RUB seen giving back some of its gains on the turnaround in natgas and oil prices.