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CEMEA Rates Snapshot: Turkey Unperturbed by Higher CPI Projections, SAGBs Reverse

EMERGING MARKETS
  • Rising US treasury yields dampen early risk on conditions across EM FI. Turkish rates lead the CEMEA pack, holding onto gains despite higher inflation projections from the CBRT. SA Rates reverse early strength to trade in the red.

  • TURKEY: Turkish USD rates were the preferred instrument over locals today, with the USD curve bull steepening -8.9-9.6bp in 2-3Y tenors. Local curve flattens at both ends with 3Y yields lifting +8bp
  • SA: Local curve reverses early gains to trade +2.8-3.2bp higher across the curve. Higher than expected PPI and rising UST yields the source of the selling pressure. 10Y yields eye 9.30 topside resistance.
  • RUSSIA: Russian markets hold onto gains, little changed by rising US yields. USD bonds better bid than locals, with the curve -1.6-3.2bp lower. Firm oil prices and improved geopolitical atmosphere supporting Russian markets.
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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