US stocks closed higher on Wednesday supported by President Trump`s suggestion on a new stimulus bill – he offered a “stand alone bill” for “stimulus checks” of $1,200. The FOMC meeting minutes were also on the agenda yesterday but provided little new information. S&P gained 1.7%, Nasdaq appreciated by 1.9%. The yield on 10Y USTs added 5 bps and closed at 0.788%.
Oil traded lower with Brent -1.5% and WTI -1.8% on disappointing inventory data: crude oil inventories came at 0.501M vs 0.294M expected.
Russian sovereign Eurobonds traded slightly higher on Wednesday; bonds traded 0-20 bps along the curve. RUB strengthened to 78.02 vs USD (+0.5%) among with EM FX leaders. Ministry of Finance placed a record amount of RUB 345.7 bn of OFZs into its weekly auction (17% of its entire quarterly borrowing plan). It sold RUB 315.7 bn of RFLB 30 FRN and RUB 30 bn of RFLB 4.5 25.
SSA sovs traded mostly higher yesterday, IVYCST outperformed on the real money demand – bonds added 50-200 bps along the curve. NGERIA appreciated by 25-100 bp, Ghana added 20-60 bps.
Asian markets trading mixed this morning – Nikkei is trading 1% up while Hang Seng is 0.6% lower.