Emerging Markets | Global | Rates | US
DM Rates Summary
• Hawkish surprises across BoE and ECB meetings, although the results were actually more nuanced than the market is pricing.
• Lagarde pedalled back from her December comments around the likelihood of a 2022 hike, but reaffirmed the commitment to the prior-guided sequencing.
• This could leave room for relative value in the EGB front-end.
EM Rates Summary
• Korea’s 0.7% of GDP supplementary budget alongside risks of fiscal slippage around the election have pushed up yields.
• But the curve has broadly flattened given the elevated market pricing for BoK hikes.
• We think too much is priced and see scope for a steepening in the KRW 2s10s NDIRS curve.
DM Rates Summary
• Hawkish surprises across BoE and ECB meetings, although the results were actually more nuanced than the market is pricing.
• Lagarde pedalled back from her December comments around the likelihood of a 2022 hike, but reaffirmed the commitment to the prior-guided sequencing.
• This could leave room for relative value in the EGB front-end.
EM Rates Summary
• Korea’s 0.7% of GDP supplementary budget alongside risks of fiscal slippage around the election have pushed up yields.
• But the curve has broadly flattened given the elevated market pricing for BoK hikes.
• We think too much is priced and see scope for a steepening in the KRW 2s10s NDIRS curve.
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