US stocks closed higher even as US inflation overshot expectations; YoY print came at 5.0% against an expected 4.7%. The NASDAQ led gains up 0.78% while the S&P and the DOW were up 0.47% and 0.06% respectively. Treasury yields rose then tanked in the aftermath with the 10Y closing 6bps lower at 1.4318%.

UK’s industrial output figures came in lower than expected for the month of April even as lockdown restrictions had started to ease. Construction contracted 2% in the month weighing down industrial production which recorded a 1.3% contraction against an expected 1.2% increase. The pound opened a little lower at $1.4169 while yield on the 10Y UKTs was however lower at 0.717%.

Asia traded mixed on Friday even as Wall Street had traded firmer following the US CPI print. The HANG SENG and the ASX were higher, closing up at 0.43% and 0.13% respectively. The CSI closed lower at 0.58% while the NIKKEI shed 0.03% as Japan Q2 manufacturing conditions worsened.

Angola called for an extension of the DSSI programme to end 2021 as the country continues to recover from the COVID-19 pandemic. Having signaled that they will not be issuing bonds, extended debt relief would further strengthen the country’s credit profile. ANGOL bonds have been the best performing in SSA in 2021 so far as Brent continues rallying; the budget was set with oil at $46 per barrel, whereas oil has traded above $60 for most of the year.