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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
EMERGING MARKETS
- Declining risk sentiment is evident in the bearish theme across major global equity indices and the sustained move higher in US yields. The US 10y yield has touched new cycle highs ahead of the NY crossover, showing further above the July and March highs to clear 4.15% and print 16bps shy of 4.3354% - the post-GFC high - from late 2022.
- The moves have pressured EM FX, with HUF, ZAR and MXN the standout underperformers on the day despite no notable news flow or data domestically, with the surge in US yields seeing JP Morgan's Index of EM currencies hit a fresh YTD low (See chart below). This week, only the Israeli Shekel has recorded gains against the greenback in the EM space.
- Declining investor appetite toward risk is evident in the increase in 5y CDS spreads across most emerging market economies. Despite the uptick in these indicators this week, it is worth noting that they have been following a downward trend since end-Q1 and remain close to cycle lows as risk premia fades following banking crisis concerns in early-2023.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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