Fixed Income Regional Market Watch

7 Jul, 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 noticeably fluctuated throughout June in nominal as well as real terms, with significant jumps registered in mid month mainly attributable to the FOMC’s most recent projection regarding the rate hike’s acceleration in 2023
  • Inflationary expectations for US have vividly increased starting from mid June for 2021 on the back of a sudden jump for Q4 2021 expectation, standing at 3.8 bp as of June 30th. The market implied Fed funds rate has reverted from the downward sloping trend of the past two months
  • Mixed dynamics have been observed in European and US equity indices with the FTSE 350 and the STOXX 600 posting minor decreases MoM and the S&P 500 increasing in the same period
  • After an elongated period of upward sloping dynamics since March 2021, gold prices are have begun reverting, however still remaining well above the pre-pandemic level. Oil prices continue to rise and exceed the pre-crisis levels, posting an 8% MoM increase by the end of June
  • The Dollar index has posted a noticeable increase in June, following a decreasing trend throughout Q2 2021. On the other hand, the Emerging Markets Currency index posted a decrease, while the Emerging Markets Capital Flow index flattened in the same period.
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