Despite the increasing rate of new infections in US (record one-day jump of 62,000 new infections on Wednesday), the stock market closed the day higher with Nasdaq hitting another record high level (10,492.5), appreciating by 1.4% while S&P gained 0.8%. The yield on 10Y USTs closed 2.4 bps higher at .665% level.
Improved demand for oil helped the benchmarks to rise to their highest levels in 4 months – Brent reached USD 43.25 per barrel, WTI closed at USD 40.85. Prices rose in response to US weekly data that showed higher crude imports and a reduction in domestic petrol reserves.
Another record high was shown by gold. The haven asset rose 1% to USD 1808 – highest level in 9 years.
Asian stocks rallying today supported by yesterday’s gains in US as well as on growing hopes that a recovery in China’s economy from the coronavirus pandemic could be gathering pace. Heng Seng is trading 0.5% higher while CSI 300 already gained more than 1%.
The Ministry of Finance tapped RUB 64.3 bn of RFLB 26 during its weekly auction yesterday with a bid-to-cover ratio of 4.21. Russian currency strengthened by 0.4% to 71.16 vs USD. Sovereign Eurobonds traded almost flat, RUSSIA 29 lost 1bps in yield.
On the SSA front we saw ANGOL curve traded down by 50-70 bps mostly because of the profit takers despite the appreciating oil prices. NGERIA also traded lower, 31s closed 30 bps lower.