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US EURODLR OPTIONS

Mixed Trade, Vol Soft/Off Lows

US EURODLR OPTIONS

Mixed Trade, Vol Soft/Off Lows

EMERGING MARKETS

Weekly ETF Inflow Streak Extends To 32 Weeks

GILT AUCTION PREVIEW

#2: 1.25% Jul-51

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  • EM Citi Inflation surprise index shows that inflationary pressures are intensifying in the EM market.
  • As a reminder, positive surprises implies that the CPI inflation prints in the EM market have been coming out higher than expected.

Source: Bloomberg/MNI


  • In the past few weeks, EM policymakers have mentioned in several occasions that the spike in inflation is expected to be only 'temporary' and inflationary pressures are expected to ease in the second half of this year.
  • However, the tone is gradually changing as it seems that the inflationary pressures could persist until the beginning of 2022; most of the EM central banks have reviewed their year-end inflation forecasts to the upside.
  • CBR, BCB and CBRT have actually raised their policy rates this year to counter the inflationary forces amid weakening currency due to rising economic and political uncertainty. (Russia by 75bps, Brazil by 150bps and Turkey by 200bps).

Source: Bloomberg/MNI