FOMC Minutes Showed Uncertainty

The Wall Street closed lower on Wednesday as FOMC minutes from its July meeting shows no immediate plan to take unconventional measures to support the economy. S&P dropped 0.4%, Nasdaq lost 0.6%. The yield on 10Y USTs finished the day 1.6 bps higher at 0.6834%.

Asian markets followed the US this morning, CSI is trading 1% lower, Hang Seng is down by almost 2%.

Inflation data in UK accelerated to 1% in July from 0.6% in June. Pound dropped by 1.1% yesterday to 1.3098 vs USD while the yield on 10Y UKTs rose 1.7bps to 0.235%.

Russian sovs traded mostly 20-30 bps lower on Wednesday except for RUSSIA 42 which outperformed and closed slightly higher. RUB lost 0.1% and closed at 73.17 vs USD.

On SSA front, we saw big sellers of Angola, bonds are underperforming since Monday; bonds lost 1-1.5 points in price along the curve. Nigeria also traded lower, bonds lost 0.5-1 points.