Financial Markets…U.S. Treasuries advanced for a fourth consecutive day in Tuesday, pushing the benchmark 10-year yield down to as low as 1.57% (the lowest since Sept. 5), as investors remained concerned about the so-called U.S. fiscal cliff.
The Philippines’ exports rebound 22.8% (y/y) in September compared to a 9% contraction in August, which was the fastest pace in almost two years led by a strong recovery of electronics sector exports directed toward two lead markets – Japan and the U.S.
Spanish borrowing costs rose to a six-week high, with the benchmark 10-year bond yield rising as high as 6 basis points to 5.96%. The country’s 2-year rate also rose, climbing as much as 7 bps to 3.28%, the highest increase in a month. Developing-country stock markets posted their longest losing streak since August, with the benchmark MSCI Emerging Market Index sliding to its fourth day and gearing for the lowest closing since mid-September.
Russian share led the decline with the benchmark Micex Index losing 1.95% as oil prices continued to drop. Elsewhere, Brazil’s Bovespa index dropped 0.4%, while the Czech Republic’s PX index retreated 1.1%. High-income Economies…Euro Area finance ministers gave a Greece a two-year extension until 2016 to meet its deficit-reduction targets