US stocks dropped yesterday after Steven Mnuchin comments on fiscal stimulus – he doubts that it could be secured before the presidential elections in November as the two sides remained “far apart” on parts of a deal. S&P lost 0.7%, Nasdaq dropped by 0.8%. The yield on 10Y USTs remained almost flat, it closed at 0.726%.

Today the EU summit will start where European representatives will publish their negotiating plan with the UK on Brexit with the deadline for the UK leaving the bloc’s market is end of the year. Pound lost 0.5% yesterday but appreciated today and currently trading at 1.3 vs USD. The yield on 10Y UKTs lost 2 bps (0.218%).

In CIS region we saw a lot of interests in new Gazprom PERP issues: USD one outperformed, bonds appreciated 60 bps during the day while EUR issue traded slightly above reoffer and closed almost flat. Russian sovs traded mostly flat along the curve. RUB ccy lost 1% to 77.77 vs USD.

On SSA front there was a sell off. KENINT and NGERIA were underperformers, bonds lost 60-150 bps across the curves. ANGOL, GABON and GHANA lost 40-80 bps across the curve.