OVERNIGHT NEWS
# Bond yields scale new cycle highs after China lifts equities, financial policy committee urges government to actively introduce policies that benefit markets and boost the economy, China cooperating with US on foreign listings.
# Day ahead: FOMC forecast to raise fed funds rate by 25bp, US retail sales. Brazil BCB forecast to hike 100bp to 11.75%, Canada CPI, Germany 10y Bund auction.
# Russia: $117mn coupon payments due today on dollar bonds, 30-day grace period, no fall back clause for payment in different currency (RUB), Fitch last week warned of imminent default.
# Nikkei +1.6%, Euro Stoxx futures +2.4%, EUR 10y IRS +3bp to 1.06%, Brent crude +2.3% to $102.2/b, Gold -0.3% to $1,917/oz
Fed to upgrade forecast of three hikes for 2022. OIS is pricing in seven
COP – Further declines in commodity and energy prices have weighed on the peso and today for the first time in a while USDCOP is seeing better outflows mainly from Real Money clients. Election news came out over the weekend with no major surprises which leads COP to be mainly flow driven with price action matching Latam peers. Market liquidity remains thin as we approach 3,855, which is a level not seen for the past two weeks. Main flows continue being from offshore clients in mainly NDF while locals remain on the side-lines.