WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The USD retained a firm tone in European trade on Monday and US Treasury yields remained under upward pressure, albeit off recent highs, amid heightened expectations of further Fed rate tightening in the near future. Market focus this week will be on whether upcoming US data and comments from Fed officials will support further rate tightening expectations.
GREECE: The SYRIZA/ANEL coalition government secured late yesterday parliamentary approval of a key multi-bill incorporating the legislation required for the implementation of the remaining prior actions attached to the 1st programme review.
SOUTH EASTERN EUROPE
BULGARIA: The domestic equity market closed in the red on Friday amid low liquidity and lack of direction. Meanwhile, the local sovereign yield curve shifted slightly downwards in the long-end of the curve (6-10 years) and external government bonds were little changed.
ROMANIA: Moving broadly in line with the trend in the CESEE region, the EUR/RON moved higher for the second consecutive week. Elsewhere, money market rates were little changed, as the market remains very liquid in RON. Local-currency government bonds maintained a better bid tone for most of the week, though gains were later parred by hawkish Fed minutes.
SERBIA: The EUR/RSD remained bound within the 122.50/70-122.65/85 trading range last week.
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