HIGHLIGHTS
WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: In FX markets, the DXY index was 0.4% weaker in European trade compared to Monday’s settlement on market anxiety ahead of Wednesday’s key US CPI report. Elsewhere, US Treasuries were modestly firmer with the 10-yr yield standing some 2.7bps lower on the day and 4.7bps below Monday’s four-year intraday highs. Along these lines, yields were lower on the day in most core European government bond markets, including in the UK, as investors are presumably positioning themselves ahead of the UK January’s CPI report later today.
GREECE: The institutions are reportedly scheduled to return to Athens on 26 February to start the 4th – and according to the time-plan last – programme review which, according to press reports, will comprise 82 prior actions. During a speech at the Greek-Israel Chamber of Commerce and Technology, the BoG Governor Yiannis Stournaras pointed out as the most important challenges for the Greek economy in the medium-term, the high public debt, the significant stock of NPLs and strategic defaulters, under-investment, the low sovereign credit rating of Greece and capital controls. Greek government bonds are under pressure for the fourth consecutive session with the 5-yr GGB yield standing at 3.69% at the time of writing, the highest level since early December and the 10-yr GGB yield standing at 4.30% after bottoming at 3.66% in January.
SOUTH EASTERN EUROPE
CESEE MARKETS: The majority of emerging market assets extended this week’s recovery earlier on Tuesday primarily thanks to a positive close for the second consecutive session in Wall Street overnight and a weaker USD.
Viewers can log herebelow and read the full report: Daily Overview February 13 2018
