WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: A new bulk of firmer than expected US data and hawkish comments by Fed Chair Janet Yellen exerted renewed upward pressure on US Treasury yields taking the 10-yr UST/Bund yield spread to the widest since 1990. In France, the centre-right party Les Republicains, will hold primary elections on Sunday to elect the candidate for presidential election, scheduled for March/April 2017.
GREECE: According to local press, the Greek government plans to table to Parliament in the following days 12 bills pertaining to the labour market reform, undeclared income, plastic money, public servants mobility and out-of-court workout. If all goes as planned, a deal may be reached on short-term debt relief which will reportedly entail a relief package of c. €65bn instead of €40bn as was initially planned. The privatisations programme has come to a temporary halt due to the delay in the appointment of the new Chairman of the Hellenic Republic Asset Development Fund (TAIPED), after its former head Stergios Pitsiorlas was designated Deputy Minister of Economy and Development.
SOUTH EASTERN EUROPE
ROMANIA: The finance ministry sold on Thursday less than an initially planned amount of RON 154mn (~€34.1mn) of 2024 T-Bonds at an average accepted yield of 3.13%, above 2.86% achieved at a prior auction in October.
CESEE MARKETS: Emerging market assets broadly fell earlier on Friday amid mounting expectations for a Fed rate hike this year. CESEE focus today is on reviews on Serbia’s and Hungary’s sovereign credit ratings by Moody’s and Fitch, respectively.