Fixed Income Regional Market Watch

1 Jun, 2021
  • 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 remained relatively stable throughout May in nominal terms with minor jumps registered in mid month that reverted back to the month’s initial levels. On the other hand, a noticeable decrease was observed in real yields in the beginning of month, recovering only mildly by the end of May
  • Inflationary expectations for US have increased vividly by the end of May for 2021 and particularly for Q4 2021, standing at 3.3 bp as of May 31st. As for 2022, the increase in the expected inflation is not as severe. On the other hand, the market implied Fed funds rate has been on downward sloping trend for the second month for the medium term, while remaining unchanged for the short term
  • Minor increases were observed in several global equity indices over May with FTSE 350 and STOXX 600 posting mid single digit growths compared to the previous month. S&P 500, MSCI World, FTSE 350, and the MSCI Emerging Markets index posted very minor low single digit MoM growths, with slight fluctuations throughout May
  • Continuing April’s trend, posting an 8% MoM increase by the end of May, gold prices are once again on a moderately pacing rise, after a downward sloping trend since the beginning of 2021. Oil prices remain well above the pre-pandemic level, displaying slight fluctuation throughout the month, but posting a 4% MoM increase by month end
  • The emerging markets capital flow index and the emerging markets currency index have continued the upwards tilted dynamics started in April and posted noticeable increases in May. On the other hand, the Dollar index has continued to decline in May, marking a second consecutive month of decrease.
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