US stocks started off the day in red, but closed almost flat as Wall Street news were mostly overshadowed by the lack of findings in Robert Mueller’s probe into Donald Trump’s alleged collusion with Russia. US 10Y yield slipped 10bps to 2.37% before recovering and closing at 2.39% on Monday. Dow Jones gained 0.06%, S&P and Nasdaq were down 0.08% and 0.07% respectively.
Asian markets experienced a day in the red on Monday. After its biggest drop in the past three months Topix recovered and gained 2.6%, Hang Seng is up 0.15%, while CSI300 is down 1.13% this morning.
The British Parliament will take control of the Brexit procedures on Wednesday with indicative voting on alternatives to PM May’s proposed deal. Possible alternatives include a no-deal scenario, revocation of Article 50, a general election of a different Prime Minister, and a second referendum vote. The Pound kept moving around the 1.32 level on Monday, finishing the trading session at USD 1.3195, yield on 10Y UKT slipped 0.5 bps, trading at 0.9848%.
German business sentiment improved for the first time in seven months, IFO business climate index increased to 99.6 from previous 98.7. European officials have indicated that a no-deal Brexit is getting more likely ahead of the April 12 deadline as the EU will have a final say in the alternative solutions the UK will present after Wednesday. The Euro traded almost flat on Monday, gaining 10 pips over the day to USD 1.1312, 10Y DBR continued slipping to -0.284% level.
The Ruble appreciated by 1% on Monday to 63.99 per USD rate following a lack of evidence in the Mueller investigation. Following a very successful auction last week MinFin is expected to announce the details of this weeks auction, RFLB 29 6.9 (YTM 8.20%) and RFLB 26 7.95 (YTM 8.12%) seem to be the most likely candidates up for offer. RUSSIA47 gained over 0.5 pt, Russian corporates traded in the green.
After opening at 5.7593 per USD on Monday the Turkish Lira experienced a flash rally this morning, during which it gained over 2% in 7 minutes, trading around 5.51 since. TURKEY47 gained over 0.5 pt to mid 78 level, Turkish corporate traded in the red.
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