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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
- As inflation continued to surprise positively in May, with the Citi EM inflation surprise index standing at its highest level since September 2008, real yields have fallen in the EM markets.
- 10Y real yields are now negative in India and Turkey (-0.3% and -0.2%, respectively).
- Brazil 10Y real yield has also fallen sharply in the past 6 weeks, down from over 3% to 1.1%.
- China remains at the bottom of the 'League', currently offering nearly -6% when we adjust for PPI inflation (we use PPI for China as it shows stronger relationship with the 10Y yield).
- Real yields are also deeply negative in the CEE region amid rising inflation pressures, which 'pushed' the NBH and CNB to raise rates last week.
- At the top, Indonesia currently offers the highest 10Y real yield among the EM world (+4.9% adjusted for CPI inflation), quickly followed by South Africa (+4.1%).
Source: Bloomberg/MNI
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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