MNI EM Credit Market Wrap - CEEMEA (31 Jan)
MNI EM Credit Market Wrap - CEEMEA (31 Jan)
Source: BBG
Measure Level Δ DoD
5yr UST 4.32% -0bp
10yr UST 4.51% -0bp
5s-10s UST 19.60 -0bp
WTI Crude 72.3 -0.5
Gold 2811 +16.9
Bonds* Z-Sprd Δ DoD
REPHUN 5 1/2 03/26/36 200bp -1bp
POLAND 5 1/8 09/18/34 135bp -3bp
ROMANI 5 3/4 03/24/35 310bp +2bp
TURKEY 6 1/2 01/03/35 319bp +2bp
KAZAKS 4.714 04/09/35 120bp -0bp
UZBEK 6.9 02/28/32 312bp -2bp
KSA 5 5/8 01/13/35 140bp +1bp
ADGB 5 04/30/34 89bp -1bp
QATAR 4 3/4 05/29/34 75bp -0bp
BHRAIN 7 1/2 02/12/36 289bp +0bp
SOAF 7.1 11/19/36 330bp +0bp
NGERIA 10 3/8 12/09/34 571bp -2bp
GHANA 5 07/03/35 704bp -3bp
BENIN 8 3/8 01/23/41 466bp +3bp
EGYPT 7.3 09/30/33 563bp +13bp
- Source: CBBT, BGN for GH and BN
FX Level Δ DoD
USDZAR 18.65 +0.06
USDTRY 35.86 +0.08
EURHUF 407.6 +0.56
EURPLN 4.21 +0.01
EURCZK 25.16 +0.03
** The main stories out of the regions **
With month end upon us, we wrap the day with 10Y U.S. Treasuries unch @ 4.51% and 5s/10s @ 19.60. We are closing the week with no further primary supply, which has been muted post Fed. Today’s session run light on earnings too, with only a couple of Fins reporting FYs in CEE. Among spread movers, Egypt’s sovereign curve charts some 15-20bp wider on the day, having tapped the market earlier in the week with new USD benchmark deals. Conversely, Ukraine’s sovereign paper shows 6-8bp tighter.
In Turkiye, Yapi Kredi Bank (YKBNK) added to yesterday's narrative for Akbank, posting stable capitalisation and slightly deteriorating asset quality. The market reaction shows YKBNK 9.25 Jan34 Tier2 charting almost a quarter point up in cash or approx. 9bp tighter @ z+370bp (source: BBG, CBBT mid). In South Africa, Eskom commented on loadshedding, we read this as only a temporary setback assuming repairs can be done in a timely manner. The ESKOM 8.45 Aug28s are charting some 12bp wider on the day in z-spread terms.