· Despite the uncertainty surrounding the US elections, stocks continued the rally in the first week of November. Notably, on Wednesday, the day after the US elections, stocks posted their best ever daily performance after an election day.
· Bank of England announced that it would increase its bond-purchasing program by an extra £150bn to cushion the economic impact of a second national lockdown. Notably, this size is above analysts’ expectations of £100bn.
· The Federal Reserve kept monetary policy unchanged at its 5th November meeting, keeping interest rates at record low levels - between 0% - 0.25%.
· After the election weekend in Georgia, yield on sovereign Eurobond widened by 38.3bps to 2.92% on Monday, with the bond trading at 101.7 of par. However, later in the week investors’ sentiments improved and the yield retreated back to 2.67% by 5 November, but still was the worst performer in the region, as yields on other regional Eurobonds narrowed during 29 October – 5 November (Russia, Turkey, Uzbekistan, Ukraine, Belarus, Armenia and Azerbaijan).
Source - Galt & Taggart
