Morning Commentary: Emerging markets debt holding steady in quiet trading session

By Rebecca Melvin

New York, Dec. 17 – Emerging markets debt was holding in overall on Monday with market players looking at the likelihood of another rate hike by the U.S. Federal Reserve this week but intent on watching for signs of dovishness going forward as worries about global growth continue.

The Federal Open Market Committee’s meeting this week will likely conclude with a rate hike on Wednesday, which would mark the policy makers’ fourth increase this year. But less optimistic growth expectations ahead may dampen the central bank’s rate-hiking pace in 2019.

In the Middle East and Africa region, market tone was “OK” but activity was very muted, a London-based trader said.

The MENA region opened up better on Monday after finishing out last week generally “tired” as investors turned mostly sellers to minimize long positions heading into the mid-December weekend.

In the broader markets, U.S. Treasuries rose, pushing down the yield on the benchmark 10-year Treasury to 2.89% from 2.9%.

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