WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Market attention is focused on the FOMC two-day policy meeting which commences later today. The majority of market participants expect the Central Bank to drop the “patient” guidance from its post-meeting policy statement and Chairman Janet Yellen to stress during the post-meeting press conference that the FOMC’s monetary policy path will be data dependent.
GREECE: According to an official MoF announcement, the general government primary balance – as per the Economic Adjustment Program definition – run a surplus of 0.3%-of-GDP in 2014 compared to a surplus of 1.8%-of-GDP envisaged in the Budget 2015 and a respective target for a 1.5%-of-GDP surplus envisioned in the troika’s DSA analysis for Greece. In other news, Greece’s Prime Minister Alexis Tsipras accepted an invitation by German Chancellor Angela Merkel to visit Berlin on March 23 for bilateral talks, just a few days after the March 19-20 EU Summit.
CYPRUS: According to government spokesman Nikos Christodoulides on Sunday, Cypriot President Nicos Anastasiades is making preparations to activate constitutional provisions in order to remove Central Bank Governor Chrystalla Georghadji from her post on allegations about a conflict of interest.
SOUTH EASTERN EUROPE
BULGARIA: According to a statement released in its website on Monday, Bulgarian National Bank (BNB) plans to offer BGN 50mn of July 2025 T-notes at an auction on March 23.
ROMANIA: The government sold at an auction on Monday the planned RON 300mn of January 2018 T-Notes, at an average accepted yield of 2.08% which came in a tad above that produced at a previous tender of similar maturity paper held last month.
CESEE MARKETS: CESEE bourses kicked off the week on a positive footing and regional currencies as well as government bonds broadly firmed on Monday recouping part of last week’s losses, as the recently launched ECB QE programme continued to favour regional assets.
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