- The IEA forecast that the surplus in global oil markets will last for longer than previously thought.
- Philippine President Duterte called for US troops to leave the southern island of Mindanao.
- Relations between Poland and the EU are deteriorating.
- Former head of Brazil’s lower house Eduardo Cunha was expelled and banned from public office for eight years.
- Brazil’s central bank cut the amount of daily reverse swap contracts sold to 5,000.
In the EM local currency bond space, South Africa (10-year yield -6 bp), Czech Republic (+1 bp), and China (+1 bp) have outperformed this week, while Hong Kong (10-year yield +20 bp), the Philippines (+18 bp), and Russia (+16 bp) have underperformed. To put this in better context, the 10-year UST yield rose 1 bp this week to 1.69%.