US stocks kicked off the mostly firmer, recouping losses after some early concerns over China’s growth slowdown in Q3. The NASDAQ led gains, up 0.84% amid a broad rally in tech while the S&P rose 0.34%; the DOW could not overcome early losses however, closing 0.10% lower. Yield on 10Y USTs closed firmer at 1.6002%.
BoE Governor Andrew Bailey’s latest comments strengthened the case for raising interest rates. Speaking to an online panel, Bailey said the bank will move to curb rising inflation else risk it becoming entrenched even as he believes the recent acceleration will be temporary. The pound closed weaker at $1.3726 while yield on 10Y UKTs was higher at 1.136%.
Asia stocks traded firmer on Tuesday, putting behind concerns over China’s slowing economic growth. The HANG SENG led gains, up 1.34% as the session ended while the CSI and the NIKKEI rose 0.98% and 0.65% respectively. The ASX was just lower at -0.08% for the day as traders priced in more aggressive tightening with hikes priced in for mid-2022 even as the RBA reiterated that conditions for a hike will not be met before 2024.
Turkey’s deficit narrowed in September following improved revenue collection coupled with reined spending; the deficit narrowed to TRY23.6 billion from TRY29.7 billion in September 2020. Revenues rose 49.4% YoY on the back of a 159% surge in VAT income. The lira woes continued however, closing at a record high of 9.3344 to the dollar on Monday while yield on TURKEY 31s was higher, about 7.03%.
The Bank of Ghana Governor Ernest Addison said he expects inflation to settle about the 10% upper limit of 6-10% target band; the comments follow the rise in September to an annual 10.6%. Elsewhere, Eurobonds continued to tumble with the selling mostly about the front and belly issues, with GHANA 26s sliding 4pts to yield about 11%. The selling follows a revision of its weight rating by several analysts from OW to MW as the government struggles to contain ballooning debt.