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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
- In the past few weeks, the macro developments have resulted in a sharp increase in the bond market volatility in Poland and Hungary.
- A rising number of policymakers have recently mentioned that inflation risks were increasing, which therefore could lead to a rise in disagreements over the trajectory of ST interest rates.
- We heard NBH deputy governor Barnabas Virag saying in a briefing yesterday that the central bank should prepare for rate hike to curb inflationary pressures; June CPI will be 'key' in policy turn.
- As a result, we saw a significant upside shift in Poland and Hungary term structures; Hungary 10Y yield is up nearly 50bps in the past week to 3.20%, and Poland 10Y is up 30bps and flirted with its 2% resistance yesterday.
- On the other hand, Czech term structure is slightly flatter on the long end; participants have been preparing for CNB to hike rates in H2 (2 to 3 hikes are currently priced in with the first one happening as early as August).
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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