Lagarde pushes back against imminent rate hike

US stocks opened the week on a weak note in a choppy session ahead of the CPI reading later in the week. The NASDAQ shed 0.58% while the S&P was 0.37% lower. The DOW managed to close flat however. Yield on 10Y USTs closed about flat at 1.9159%.

ECB President Christine Lagarde said the adjustment to monetary policy will be gradual in a seeming push back to market bets that a rate hike was imminent. She also reiterated that price pressures will ease throughout the year even as risks on outlook remain tilted to the upside. Earlier, the Dutch Governing Council member Klaas Knot had said he expected a hike in Q4. Yield on 10Y DBRs closed 2bps higher at 0.228% while the euro closed about flat at 1.1442%.

Asian stocks were mixed on Tuesday with the ASX leading gains up 1.07%. The NIKKEI also had a positive session, gaining 0.13%, as With December wages lower by 0.2%. the CSI and the HANG SENG were lower however at 0.55% and 1.02% in the red respectively.

GHANA Eurobonds tanked some 1.5 points in cash on Monday in the aftermath of Moody’s downgrade to Caa1; this was the country’s first foray into the C’s with Fitch and S&P rating it B-. The bonds found some demand later in the session paring some 0.5 points from the session lows. Angola, in contrast, vacated the C’s after S&P upgraded it to B-.