WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: The US dollar gave back some of its recent hefty gains while Treasury bond yields moved lower in European trade on Tuesday despite increased expectations for a Fed rate hike in December. In the rates market, the 10yr Treasury yield fell slightly to 2.22% in European trade on Tuesday after climbing to an eleven-month high of 2.30% on Monday. On the data front, focus today is the German ZEW for November and US retail sales for October. Furthermore, BoE Governor Mark Carney speaks at the Treasury Committee, while Fed speakers including Eric Rosengren and Stanley Fischer will also lure market attention.
GREECE: The heads of the institutions that are back in Athens to resume talks with the Greek government are scheduled to meet today with a number of Greek officials in the context of the 2nd programme review. Labour market reform stands at the top of the agenda while other priority issues include the medium term fiscal strategy, the progress in the implementation of the privatizations programme, the privatizations fund and the legal framework for the out-of-court workout. On the economic data front, according to the Hellenic Statistical Authority (ELSTAT) flash estimates published yesterday, real GDP growth stood at 0.5%/+1.5% QoQ/YoY in Q3 2016 (seasonally adjusted data) from an upward revised +0.3%/‐0.6% QoQ/YoY in Q2 2016.
SOUTH EASTERN EUROPE
CYPRUS: In contrast to market expectations Moody’s left unchanged on Friday the sovereign credit rating of Cyprus at B1. Nevertheless, it changed the outlook from stable to positive.
ROMANIA: The finance ministry sold on Monday RON 160mn (€35.5mn) of 2019 T-Bonds, less than an initially planned amount of RON 400mn (€88.7mn). The average accepted yield came in at 1.36%, a tad above 1.22% achieved at a prior auction of the paper held in October.
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