A relatively quiet day yesterday in the U.S markets as the 10Y USTs were marginally higher in yields on hawkish Fed comments. Recent UST moves have been driven by Fed comments and positioning, with the comments highlighting the difference of opinion among the FOMC members. Today again we get six Fed speakers — a mix of doves and hawks, which would impact UST yields. The yield on 10-year Treasuries advanced one basis point to 1.50%. In Wall Street, the S&P 500 and the Dow Jones Industrial Average DJIA index closed the day 0.11% and 0.21% lower respectively at 4,241.84 and 33,874.24 while the Nasdaq Composite COMP added 0.13% to its record set a day before, inching up 0.1% to 14,271.73.
Focus in the UK market would be on the BOE meeting scheduled for today, but no press conference would be taking place. No change in their policy would be expected today but the BOE would need to/expected to reduce the pace of purchases if it is to complete the GBP875bn by early December. The FTSE 100 index did close 0.21% higher buoyed by the recent economic data which has been positive as the covid restrictions continue to ease.
Brent crude futures rose 30 cents, or 4 basis points to $75.49 a barrel by 0643 GMT, after increasing 0.5% on Wednesday, while the U.S. West Texas Intermediate (WTI) crude futures climbed 31 cents, or 4 basis points to $73.39 a barrel, after rising 0.3% on Wednesday. Oil prices gained for a second day on Thursday after a bigger-than-expected drawdown in U.S. crude and gasoline stocks confirmed outlook for robust fuel demand and on doubts about the future of the 2015 Iran nuclear deal that could end U.S. sanctions on Iranian crude exports.
The government of Cameroon has mandated the likes of Citi, JPMorgan and Societe Generale organize a series of fixed income investor meetings which commenced yesterday as they intend to make a tender offer of its outstanding $750m 9.500% notes due 2025 expiring on June 29 2021, at 5pm New York time. A Rule 144A/RegS EUR benchmark 10/12Y weighted average life offering will follow, while the tender offer is conditional upon the successful closing of the new notes offering.
The International Monetary Fund will release $407 million in new funding for Kenya’s government, citing the nation’s dedication to economic overhauls. In a statement from the IMF after the board completed a review of its loan programs, the body said that the Kenyan authorities have shown strong commitment amid challenging circumstances and are acting to reduce debt vulnerabilities while maintaining support for the economic recovery.