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Summary – February 12

LATAM
  • With Brazil out for carnival today, the Latam data calendar focuses on Mexico same-store sales data for January and Colombia January consumer confidence. Later in the week, market participants will be focused on US January CPI inflation data on Tuesday, while the minutes to the recent BCCh monetary policy meeting and Colombia Q4 GDP data will be published on Thursday. Lighter volumes aided by the formal beginning of the Chinese Lunar New Year holidays have muted price action, with the US 10y yield still yet to challenge last week's highs and make any material test on the key 4.20% mark.
  • Global News:
    • MIDEAST – Israel's military said it rescued two hostages and carried out a series of strikes in southern Gaza in the early hours Monday local time, sparking confusion and panic in Rafah, where more than 1 million people have fled to escape conflict elsewhere in the Palestinian enclave. The two hostages were both said to be in good medical condition.
    • US - Donald Trump’s comments over the weekend that he once told a European leader he’d abandon NATO members to a Russian invasion if they hadn’t met defense-spending commitments have renewed talk about what a second term would mean for allies. Trump’s comments on NATO send a “horrible message” to Russian President Putin “and to America,” Democratic Senator Joe Manchin said Sunday.
    • EU - ECB Governing Council member Mario Centeno said he would prefer that interest rates fall gradually and in a steady way instead of dropping more rapidly. “Normally, when central banks have to act in a more rapid way, it means that something isn’t going well in this process,” the Portuguese central bank governor said in an interview with TSF on Saturday.
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  • With Brazil out for carnival today, the Latam data calendar focuses on Mexico same-store sales data for January and Colombia January consumer confidence. Later in the week, market participants will be focused on US January CPI inflation data on Tuesday, while the minutes to the recent BCCh monetary policy meeting and Colombia Q4 GDP data will be published on Thursday. Lighter volumes aided by the formal beginning of the Chinese Lunar New Year holidays have muted price action, with the US 10y yield still yet to challenge last week's highs and make any material test on the key 4.20% mark.
  • Global News:
    • MIDEAST – Israel's military said it rescued two hostages and carried out a series of strikes in southern Gaza in the early hours Monday local time, sparking confusion and panic in Rafah, where more than 1 million people have fled to escape conflict elsewhere in the Palestinian enclave. The two hostages were both said to be in good medical condition.
    • US - Donald Trump’s comments over the weekend that he once told a European leader he’d abandon NATO members to a Russian invasion if they hadn’t met defense-spending commitments have renewed talk about what a second term would mean for allies. Trump’s comments on NATO send a “horrible message” to Russian President Putin “and to America,” Democratic Senator Joe Manchin said Sunday.
    • EU - ECB Governing Council member Mario Centeno said he would prefer that interest rates fall gradually and in a steady way instead of dropping more rapidly. “Normally, when central banks have to act in a more rapid way, it means that something isn’t going well in this process,” the Portuguese central bank governor said in an interview with TSF on Saturday.