2000-02-16 Sluggish trading
Daily Brady Bond Trading Commentary
Wednesday February 16, 2000
Trading was extremely sluggish Wednesday as most emerging markets debt prices slid marginally.
Greenspan's Humphrey Hawkins testimony and the U.S. PPI report will be the market's focus through Thursday morning. Despite the market's preparedness for several more rate hikes this year, there is still downside risk stemming from an inflationary spike or uncharacteristically bearish comments from the Fed Chairman.
Brazil's COPOM left the selic rate unchanged, as expected, and maintained no bias on the direction of rates. With any desire to resume easing rates tempered by fears of inflation, the Brazilian Central Bank is likely to be very cautious in coming months.
Contributed by
Credit Lyonnais Securities (USA) Inc.
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