Fixed Income Regional Market Watch

6 Jan, 2022
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Fixed Income Regional Market Watch report covers a range of EUR and USD state and corporate Eurobonds issued in CIS, Caucasus, Eastern Europe and extended Region

 

  • Rates on longer dated US treasury securities noticeably increased over December in nominal terms, while it reverted back to the initial level in real terms, in line with the increasing inflation rate.
  • Inflationary expectations for US continue the increasing tendency for 2022 and surged in December, standing at 4.4%, a 0.7 pp MoM increase, as of December 31st. The increase in the expected inflation rate for 2023 remained relatively stable, having only increased by a mere 0.05 pp MoM.
  • The market implied Fed funds rate has increased further in December for the one year ahead period, while longer term outlook remained stable.
  • Noticeable increases have been observed in European and US equity indices throughout the month. A minor increase has been observed in gold prices throughout December, posting a low single-digit MoM growth by the end of the month. Oil prices have once again been on a rise after noticeably decreasing in November and posted a 10% MoM increase in December.
  • The Dollar index, as well as the Emerging Markets currency index, has remained stable, while the Emerging Markets Capital Flow Index increased noticeably in December 2021.
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