EM ASIA CREDIT: MNI EM Credit Market Update - Asia

• MNI RIKSBANK LEAVES POLICY RATE ON HOLD AT 2.0%:

SEK is weakening a little into the Riksbank decision. EURSEK up 0.2% at 11.1996 at typing. Initial resistance the August 7 high at 11.2206.

Gilts see similar price action to GBP STIRs at the open, moving lower, before recovering on cues from EGBs and the lack of meaningful hawkish repricing in the short end in the wake of the CPI data (we detailed the reasons why we thought that would be the case ahead of time).

• Futures traded as low as 90.54 before recovering to 90.77.
• Bears remain in technical control, initial support and resistance located at 90.43/91.32.
• Yields ~1.5bp lower across the curve.
• The May high in 10s (4.80%) remains untouched.
• 50s have pierced 5.00% over the past couple of sessions, but bears failed to force a meaningful move above the psychological level, 4.965% last.
• Outside of the CPI data, Brightmine wage growth (released overnight) once again held steady at 3.0% in Y/Y terms for the three months through July.
• Little of note on the UK macro calendar for the remainder of the day.