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Citi Warns of Risk to CEE Front-End Rates

EMERGING MARKETS
  • Citi's Luis Costa Sees 'Too High' Front-End Rates in CEE After Selloff
  • Some EM front ends are starting to look too high, taking into consideration new Covid-19 cases and slow vaccinations that may lead to more restrictive measures
  • Note that virus cases stopped showing improvements in central and eastern Europe, and in some cases, numbers are trending up again
  • On broader EM developments, see "fascinating market" characterized by "the fear of further legs higher in U.S. rates volatility
  • still expect a lot of upside price discovery in transitory growth and inflation benchmarks over the next couple of quarters. So, it is still very difficult to call it the end of the rates selloff
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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