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Colombia & Argentina Economic Activity Data Scheduled

LATAM
  • Another fairly quiet LatAm scheduled today which will be highlighted by economic activity data for both Colombia and Argentina.
  • EGB yields have fallen sharply in early trade Tuesday, pulling down Treasury and Gilt yields with them. The catalyst for the EGB move was uncharacteristically dovish commentary by ECB hawk Knot who sounded unconvinced about the need for hikes past next week's near-certain 25bp raise (tightening beyond this month "would at most be a possibility but by no means a certainty").
  • Despite the relatively dovish comments above, EURUSD remains moderately higher on the day, having printed fresh cycle highs at 1.1276. The move in yields has more notably bolstered the Japanese Yen, which sits firmer against most others in G10.
  • China released a plan to boost household spending on everything from electric appliances to furniture as economic growth slows, though economists say it’s still light on the kinds of policies that would meaningfully boost the recovery.
    • Local authorities are encouraged to help residents refurbish their homes, and people should get better access to credit to buy household products, according to the plan released jointly by 13 government departments. Officials are expected to outline more details at a briefing later Tuesday.

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