WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In the absence of major data releases yesterday, market participants’ focus shifted on comments by St. Louis Fed President James Bullard that, as things stand at this point, odds for a Fed rate hike in September are higher than 50%. Reacting to the above, yields of short-dated US bonds rose assisting the USD to extend its recent gains.
GREECE: In line with the agreement reached at the July 12 Euro Summit for the formal inception of official negotiations on a 3-year ESM loan facility, the Greek government submitted to Parliament earlier today a draft bill incorporating the second set of prior actions. These include: (i) adoption of the Code of Civil Procedure, with a view to accelerating the judicial process and reduce costs in the civil justice system; and (ii) transposition of the BRRD with support from the European Commission. The voting procedure in the Hellenic Parliament is scheduled to be completed by midnight tomorrow (July 22), as envisaged in the relevant timeline agreed with official creditors.
SOUTH EASTERN EUROPE
ROMANIA: The finance ministry sold on Monday RON460mn (equivalent to €104.2mn) in 5.75% April 2020 T-bonds, more than the RON300mn initially planned thanks to strong investor demand.
CESEE MARKETS: The majority of emerging stock markets closed lower on Monday as reinforced market expectations for a Fed interest rate hike later this year weighed on risky assets. Meanwhile, CESEE assets closed mixed.
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