## FINANCIAL MARKET UPDATE — Data through November 12, 2004 ## Source details **Canonical URL:** [FINANCIAL MARKET UPDATE — Data through November 12, 2004](https://www.imf.org/-/media/files/publications/fmu/1104.pdf) ## Other formats - [Markdown version](/-/media/files/publications/fmu/1104.pdf.md) - [Structured JSON version](/-/media/files/publications/fmu/1104.pdf.json) --- ### Overview - The Financial Market Update (International Capital Markets Department, Global Markets Analysis Division) covers developments through November 12, 2004. - Major bond, currency, and equity markets traded in narrow ranges for much of the year; actual and implied volatility remained low. - Government bond yields in the United States, the euro area, and Japan were anchored at low levels by expectations of continued monetary accommodation, moderating growth momentum, and limited inflationary pressure. - Strengthened corporate balance sheets reduced default risk and contributed to compressed credit spreads in U.S. and European corporate bond markets. - A “quest for yield” by investors—spurred by low short-term interest rates and low market volatility—supported demand for credit and emerging market bond issuance. - The U.S. dollar depreciated after renewed concerns about the size and persistence of the U.S. current account deficit; large portfolio inflows to U.S. government and corporate bonds continued, though at a slower pace than in the first half of 2004. - Oil and other commodity prices were volatile; geopolitical risks, limited excess capacity, and strong global demand boosted oil prices through October, though prices moderated thereafter; futures markets suggest expectations that high prices may persist. - High oil prices were viewed primarily as a tax on consumption more likely to dampen growth than boost inflation, mitigated by lower energy intensity and the relatively modest increase in real prices this year. ### Key Risks Highlighted - Credit spread compression in mature and emerging markets; yield-seeking and leveraged positions raise the risk of a snap-back in spreads if expectations for continued low rates, moderating growth, limited inflation, and low volatility are shaken. - A credit event in a firm or sector could cascade through credit markets and send spreads higher; recent stress tests included allegations of market manipulation by insurance brokers and potential downgrades in the U.S. automobile sector. - Market participants may be underestimating inflationary risks; U.S. treasury yields were described as “well below levels that might be expected, given the pace of economic growth,” while long-term market-based inflation expectations appeared little affected by the sharp increase in oil and commodity prices since June. - A sudden upward shift in interest rate expectations would trigger substantial deleveraging across asset classes, surge credit spreads (including for emerging markets), increase volatility, and strain derivative sellers providing “insurance.” - Concerns about the size, composition, and sustainability of flows financing the large and growing U.S. external current account deficit; markets expected the dollar to decline over the medium term but attached low probability to a disorderly decline. A rapid dollar fall would likely push U.S. treasury yields higher, reduce risk appetite, encourage unwinding of carry trades, and raise credit spreads on mature and emerging market bonds, possibly spreading to emerging local debt markets. ### Major Government Bond Markets - Since mid-June (when G-3 yields peaked and the U.S. tightening cycle began), markets moderated expectations for growth and the pace of monetary tightening. - Expectations for moderating growth, benign inflation, gradual removal of monetary accommodation, limited corporate borrowing, and high foreign demand for U.S. bonds contributed to a low U.S. interest rate environment despite a high budget deficit. - In contrast to prior tightening cycles, yields on 10-year U.S. treasuries fell—not rose—in the weeks following the first Federal funds rate increase. - Government benchmark yield curves in the United States and the euro area flattened since the beginning of the year (short rates up, longer yields down). - In Japan, high oil prices reversed much earlier yield increases and yield curve steepening. - Declining real yields on inflation-indexed bonds accounted for much of the fall in U.S. and European government bond yields since mid-June. - Long-term inflation expectations—calculated as the differential between nominal and inflation-indexed yields—remained little changed despite the sharp increase in oil and commodity prices since June. - Market expectations for policy rates: - The market expected the Fed funds rate to be 2¼ percent at the end of this year. - Market participants predicted a Fed funds rate of 3 percent at the end of 2005. - In the euro area, markets expected the ECB not to raise benchmark rates until well into 2005; some analysts pointed to the possibility the ECB may cut rates. - Futures markets priced declining short-term rates for the United Kingdom. - In Japan, exit from the zero interest rate policy was put aside pending a sustained increase in core prices. ### Major Equity Markets - Mature equity markets remained largely range-bound in 2004, reflecting moderating earnings momentum and rising oil prices. - Earnings growth was seen to have peaked; firms were expected to face slower revenue growth and narrower profit margins. - Trendless trading and supportive valuation levels contributed to low implied volatility on equity options. - Price/earnings ratios (12-month forward basis) were below long-term averages in major markets. - The financial sector’s earnings were bolstered by low interest rates; brokers generated proprietary trading gains that partially offset declines in underwriting and customer trading revenue. - The financial sector (including financial activities of nonfinancial institutions) accounted for a high proportion of total U.S. corporate profits in the third quarter. - A change in the interest rate environment could have a larger-than-usual impact on corporate profitability due to the financial sector’s weight in profits. ### Corporate Credit Markets - Corporate credit quality continued to improve: strong free cash flow and solid, if slowing, profitability enabled broad de-leveraging as firms paid down debt and returned funds to shareholders through higher or special dividends and share buybacks rather than new investment. - Issuance levels—especially by high-grade borrowers—were low. - Default rates were close to normal cyclical lows with limited room to decline further; some ratings agencies forecast a modest increase in default rates early next year from current low levels. - Credit spread compression in U.S. and European corporate bond markets persisted (high-grade and high-yield spreads low). - Low market volatility encouraged carry trades and leverage, including increased use of credit derivatives to establish leveraged credit positions; speculative use of such derivatives raises the risk that an unanticipated credit event would trigger broad-based spread widening. - Market resilience examples: - Allegations of manipulation in the insurance sector caused a temporary spike in spreads for insurers but were contained. - The U.S. automobile sector (Ford and General Motors) remained at the lowest investment grade; a downgrade below investment grade would likely force some institutional investors to sell holdings, triggering high trading activity and possible turbulence. ### Global Imbalances and Currency Markets - From March through early October, major currencies were mostly trendless within narrow ranges; since early October the U.S. dollar weakened against major currencies. - The euro rose to an all-time high in early November; commodity and higher-yielding currencies (the rand, the Canadian and Australian dollars) strengthened amid rising commodity prices. - Markets refocused on large financing needs of the U.S. external accounts and domestic savings imbalances; flows in August and September were below first-half 2004 levels though still substantial. - The heavy concentration of foreign portfolio flows into U.S. government and corporate bonds contributed to low government yields and corporate credit spreads; net flows into U.S. equity markets remained weak. - Asian currencies appreciated against the dollar, though less than the euro; nondeliverable forward markets showed renewed speculation that China may revalue its currency sometime during 2005. ### Currency Market Expectations and Behavior - Most participants believe that China will maintain its peg, and that other Asian central banks are likely to intervene into the foreign exchange market in support of the dollar, limiting the extent to which the U.S. dollar would adjust against Asian currencies. - Currency volatility has begun to rise, albeit from low levels. - Currency volatilities (three-month forwards, in percent) shown include Euro/Yen, Dollar/Euro, and Dollar/Yen; implied volatilities across equities, currencies, and swaps have been low but rising. ### Financial Market Volatility: Low but with an Options Risk Premium - Financial markets have experienced relatively low levels of volatility and trendless trading throughout much of the year. - Factors depressing volatility: - Stronger corporate balance sheets: lower debt, lower borrowing costs, earnings ample to cover interest payments -> lower default probabilities -> dampened equity and bond volatility. - Low interest rates and abundant liquidity: funds flowed into riskier assets, compressing spreads. - Investors, including hedge funds, have sold options (shorting volatility) as a source of income in the low interest rate environment. - Implied future volatility remains above actual market volatility: - The gap between implied and actual volatilities has been positive and rising over recent months, though still below highs seen earlier in the year. - Market participants price options with a risk margin in case actual volatility returns to historical norms. - VIX and BBB spreads context: - Figure 18 shows VIX (left scale) and BBB corporates (basis points, right scale) illustrating historically low volatility and compressed spreads. ### Emerging Market Bonds: Spread Compression and Improved Fundamentals - Emerging market credit spreads have narrowed to near historical lows, reflecting abundant global liquidity, a benign external environment, and improved fundamentals. - Spread volatility has been relatively subdued except for a spike in April and May during adjustment to the prospect of higher U.S. interest rates. - The quest for yield and the surge in oil prices have compressed spreads on higher-yielding emerging market countries, particularly oil exporters, more than on investment grade countries. - Emerging market credit spreads remain above comparably rated U.S. corporate bonds. - The spread differential between investment grade corporates and emerging markets has remained stable. - Differentials for B and BB rated credits have widened marginally. - Credit quality improvements: - Since the beginning of the third quarter, eight countries in the EMBIG universe received ratings upgrades (against no downgrades), including Turkey, Brazil, and Venezuela; Brazil and Venezuela received upgrades from all three major ratings agencies. - Technical and flow factors: - Long-term “strategic” inflows into the asset class remained robust and are expected to reach $10 billion for the year, and remain strong next year. - Net inflows from U.S.-based dedicated emerging market debt funds resumed in the third quarter, with modest outflows in October. - External emerging market financing needs for 2004 largely completed; large amortization and coupon payments expected to provide technical support in the near term. - Leverage: - Degree of leverage in the asset class appears to be on the increase, though below previous highs. - Evidence that the April–May sell-off led investors to reduce highly leveraged positions, which appear to have been rebuilt. ### Surging Primary Issuance into a Receptive Market - Emerging market gross issuance is set for one of the strongest years on record, driven by investor appetite from the search for yield. - Two noteworthy primary market developments: - The share of euro-denominated bond issuance has increased, reflecting renewed demand from European institutional investors and diversifying funding sources. - Some emerging market issuers (notably Colombia and Uruguay) issued bonds denominated in local currencies on international capital markets—small in size and limited in number—but steps toward overcoming the “original sin” of issuing international bonds in local currencies. - Market capacity for 2005 issuance: - With part of the estimated gross sovereign external bond issuance plans for 2005 already pre-financed, the market appears to have ample capacity to absorb next year’s expected issuance of nearly $40 billion, compared with $52 billion of sovereign bonds placed in 2004 through end-October. ### Key Figures and Statistics - Emerging market strategic inflows expected to reach $10 billion for the year. - Expected sovereign external bond issuance for 2005: nearly $40 billion. - Sovereign bonds placed in 2004 through end-October: $52 billion. - Table 2 aggregated totals (as of October 31): - Asia requirement: 5,800; Funded: -; Remaining: 5,800 - Emerging Europe requirement: 18,355; Funded: -; Remaining: 18,355 - Latin America requirement: 14,750; Funded: 4,783; Remaining: 9,967 - Middle East & Africa requirement: 5,250; Funded: -; Remaining: 5,250 - Total requirement: 44,155; Funded: 4,783; Remaining: 39,372 - Selected country sovereign external new issuance estimates in 2005 (US$ mn): - Brazil: Requirement 6,000; Funded 1,200; Remaining 4,800 - Chile: Requirement 600; Funded -; Remaining 600 - China: Requirement 1,000; Funded -; Remaining 1,000 - Colombia: Requirement 1,500; Funded 500; Remaining 1,000 - Croatia: Requirement 850; Funded -; Remaining 850 - El Salvador: Requirement 250; Funded -; Remaining 250 - Hungary: Requirement 2,400; Funded -; Remaining 2,400 - Indonesia: Requirement 500; Funded -; Remaining 500 - Israel: Requirement 750; Funded -; Remaining 750 - Lebanon: Requirement 2,000; Funded -; Remaining 2,000 - Malaysia: Requirement 500; Funded -; Remaining 500 - Mexico: Requirement 2,000; Funded 1,500; Remaining 500 - Morocco: Requirement 500; Funded -; Remaining 500 - Pakistan: Requirement 500; Funded -; Remaining 500 - Panama: Requirement 300; Funded -; Remaining 300 - Peru: Requirement 1,000; Funded -; Remaining 1,000 - Philippines: Requirement 1,800; Funded -; Remaining 1,800 - Poland: Requirement 4,800; Funded -; Remaining 4,800 - Romania: Requirement 600; Funded -; Remaining 600 - Russia: Requirement 3,000; Funded -; Remaining 3,000 - Slovak Republic: Requirement 1,205; Funded -; Remaining 1,205 - South Africa: Requirement 1,000; Funded -; Remaining 1,000 - South Korea: Requirement 1,000; Funded -; Remaining 1,000 - Thailand: Requirement 500; Funded -; Remaining 500 - Turkey: Requirement 5,500; Funded -; Remaining 5,500 - Ukraine: Requirement 1,000; Funded -; Remaining 1,000 - Venezuela: Requirement 3,000; Funded 790; Remaining 2,210 - Table 1 highlights (gross issuance and net issuance aggregates): - Year-to figure for gross issuance by asset: 222.0 (in billions of U.S. dollars) - Net issuance by asset, year-to: 119.5 (in billions of U.S. dollars) - Net issuance by region, Asia year-to: 53.4; Latin America year-to: 1.3; Europe, Middle East, Africa year-to: 48.5 - Secondary markets snapshot: - US 10 yr. Treasury Yield (yield in %): 5.12, 5.05, 3.82, 4.25, 3.80, 3.52, 3.94, 4.25, 3.84, 4.58, 4.12, 4.18, 4.12, 4.03, 4.18, 4.18 *Source: Financial Market Update, International Capital Markets Department, Global Markets Analysis Division. Data as of November 12, 2004; IMF staff estimates; Bloomberg L.P.; U.S. Treasury Department, Treasury International Capital System; J.P. Morgan Chase & Co.; Capital Data.* ### Section 1 ### FINANCIAL MARKET UPDATE — Section 1 (Data through November 12, 2004) ### Overview - The Financial Market Update (International Capital Markets Department, Global Markets Analysis Division) covers developments through November 12, 2004. - Major bond, currency, and equity markets traded in narrow ranges for much of the year; actual and implied volatility remained low. - Government bond yields in the United States, the euro area, and Japan were anchored at low levels by expectations of continued monetary accommodation, moderating growth momentum, and limited inflationary pressure. - Strengthened corporate balance sheets reduced default risk and contributed to compressed credit spreads in U.S. and European corporate bond markets. - A “quest for yield” by investors—spurred by low short-term interest rates and low market volatility—supported demand for credit and emerging market bond issuance. - The U.S. dollar depreciated after renewed concerns about the size and persistence of the U.S. current account deficit; large portfolio inflows to U.S. government and corporate bonds continued, though at a slower pace than in the first half of 2004. - Oil and other commodity prices were volatile: imponderable geopolitical risks, limited excess capacity, and strong global demand boosted oil prices through October, though prices moderated thereafter; futures markets suggest expectations that high prices may persist. - High oil prices were viewed primarily as a tax on consumption more likely to dampen growth than boost inflation, mitigated by lower energy intensity and the relatively modest increase in real prices this year. ### Key Risks Highlighted - Spreads in mature and emerging credit markets compressed to low levels. While partly justified by improved credit quality, low short-term rates and low volatility have induced yield-seeking and leveraged positions that raise the risk of a snap-back in spreads if expectations for continued low rates, moderating growth, limited inflation, and low volatility are shaken. - A credit event in a firm or sector could cascade through credit markets and send spreads higher; examples noted that have been weathered so far include allegations of market manipulation by insurance brokers and potential downgrades in the U.S. automobile sector. - Market participants may be underestimating inflationary risks. U.S. treasury yields were described as “well below levels that might be expected, given the pace of economic growth,” and long-term market-based inflation expectations appeared little affected by the sharp increase in oil and commodity prices since June. - A sudden upward shift in interest rate expectations would trigger substantial deleveraging across asset classes, surge credit spreads (including for emerging markets), increase volatility, and strain derivative sellers providing “insurance.” - Concerns about the size, composition, and sustainability of flows financing the large and growing U.S. external current account deficit resurfaced. Markets expected the dollar to decline over the medium term but attached low probability to a disorderly decline; a rapid dollar fall would likely push U.S. treasury yields higher, reduce risk appetite, encourage unwinding of carry trades, and raise credit spreads on mature and emerging market bonds, possibly spreading to emerging local debt markets. ### Major Government Bond Markets - Since mid-June (when G-3 yields peaked and the U.S. tightening cycle began), markets moderated expectations for growth and the pace of monetary tightening. - Expectations for moderating growth, benign inflation, gradual removal of monetary accommodation, limited corporate borrowing, and high foreign demand for U.S. bonds contributed to a low U.S. interest rate environment despite a high budget deficit. - In contrast to prior tightening cycles, yields on 10-year U.S. treasuries fell—not rose—in the weeks following the first Federal funds rate increase. - Government benchmark yield curves in the United States and the euro area flattened since the beginning of the year (short rates up, longer yields down). - In Japan, high oil prices reversed much earlier yield increases and yield curve steepening. - Declining real yields on inflation-indexed bonds accounted for much of the fall in U.S. and European government bond yields since mid-June. - Long-term inflation expectations—calculated as the differential between nominal and inflation-indexed yields—remained little changed despite the sharp increase in oil and commodity prices since June. - Market interpretation: higher oil prices were seen as more likely to dampen growth than to boost inflation; corporations were expected to absorb higher input costs due to operating below full capacity and relatively high profit margins. - Market expectations for policy rates: - The market expected the Fed funds rate to be 2¼ percent at the end of this year. - Market participants predicted a Fed funds rate of 3 percent at the end of 2005. - In the euro area, markets expected the ECB not to raise benchmark rates until well into 2005; some analysts pointed to the possibility the ECB may cut rates. - Futures markets priced declining short-term rates for the United Kingdom. - In Japan, exit from the zero interest rate policy was put aside pending a sustained increase in core prices. ### Major Equity Markets - Mature equity markets remained largely range-bound in 2004, reflecting moderating earnings momentum and rising oil prices. - Earnings growth was seen to have peaked; firms were expected to face slower revenue growth and narrower profit margins. - Trendless trading and supportive valuation levels contributed to low implied volatility on equity options. - Price/earnings ratios (12-month forward basis) were below long-term averages in major markets. - The financial sector’s earnings were bolstered by low interest rates; brokers generated proprietary trading gains that partially offset declines in underwriting and customer trading revenue. - The financial sector (including financial activities of nonfinancial institutions) accounted for a high proportion of total U.S. corporate profits in the third quarter. - A change in the interest rate environment could have a larger-than-usual impact on corporate profitability due to the financial sector’s weight in profits. ### Corporate Credit Markets - Corporate credit quality continued to improve: strong free cash flow and solid, if slowing, profitability enabled broad de-leveraging as firms paid down debt and returned funds to shareholders through higher or special dividends and share buybacks rather than new investment. - Issuance levels—especially by high-grade borrowers—were low. - Default rates were close to normal cyclical lows with limited room to decline further; some ratings agencies forecast a modest increase in default rates early next year from current low levels. - Credit spread compression in U.S. and European corporate bond markets persisted (high-grade and high-yield spreads low). - Low market volatility encouraged carry trades and leverage, including increased use of credit derivatives to establish leveraged credit positions; speculative use of such derivatives raises the risk that an unanticipated credit event would trigger broad-based spread widening. - Market resilience examples noted: - Allegations of manipulation in the insurance sector caused a temporary spike in spreads for insurers but were contained. - The U.S. automobile sector (Ford and General Motors) remained at the lowest investment grade; a downgrade below investment grade would likely force some institutional investors to sell holdings, triggering high trading activity and possible turbulence. ### Global Imbalances and Currency Markets - From March through early October, major currencies were mostly trendless within narrow ranges; since early October the U.S. dollar weakened against major currencies. - The euro rose to an all-time high in early November; commodity and higher-yielding currencies (the rand, the Canadian and Australian dollars) strengthened amid rising commodity prices. - Markets refocused on large financing needs of the U.S. external accounts and domestic savings imbalances; flows in August and September were below first-half 2004 levels though still substantial. - The heavy concentration of foreign portfolio flows into U.S. government and corporate bonds contributed to low government yields and corporate credit spreads; net flows into U.S. equity markets remained weak. - Asian currencies appreciated against the dollar, though less than the euro; nondeliverable forward markets showed renewed speculation that China may revalue its currency sometime during 2005. *Source: Financial Market Update, International Capital Markets Department, Global Markets Analysis Division. Data as of November 12, 2004.* ### Section 2 ### Section 2 ### Currency Market Expectations and Behavior - Most participants believe that China will maintain its peg, and that other Asian central banks are likely to intervene into the foreign exchange market in support of the dollar, limiting the extent to which the U.S. dollar would adjust against Asian currencies. - Currency volatility has begun to rise, albeit from low levels. - Currency volatilities (three-month forwards, in percent) shown include Euro/Yen, Dollar/Euro, and Dollar/Yen; implied volatilities across equities, currencies, and swaps have been low but rising. ### Financial Market Volatility: Low but with an Options Risk Premium - Financial markets have experienced relatively low levels of volatility and trendless trading throughout much of the year. - Factors depressing volatility: - Stronger corporate balance sheets: lower debt, lower borrowing costs, earnings ample to cover interest payments -> lower default probabilities -> dampened equity and bond volatility. - Low interest rates and abundant liquidity: funds flowed into riskier assets, compressing spreads. - Investors, including hedge funds, have sold options (shorting volatility) as a source of income in the low interest rate environment. - Implied future volatility remains above actual market volatility: - The gap between implied and actual volatilities has been positive and rising over recent months, though still below highs seen earlier in the year. - Market participants price options with a risk margin in case actual volatility returns to historical norms. - VIX and BBB spreads context: - Figure 18 shows VIX (left scale) and BBB corporates (basis points, right scale) illustrating historically low volatility and compressed spreads. ### Emerging Market Bonds: Spread Compression and Improved Fundamentals - Emerging market credit spreads have narrowed to near historical lows, reflecting abundant global liquidity, a benign external environment, and improved fundamentals. - Spread volatility has been relatively subdued except for a spike in April and May during adjustment to the prospect of higher U.S. interest rates. - The quest for yield and the surge in oil prices have compressed spreads on higher-yielding emerging market countries, particularly oil exporters, more than on investment grade countries. - Emerging market credit spreads remain above comparably rated U.S. corporate bonds. - The spread differential between investment grade corporates and emerging markets has remained stable. - Differentials for B and BB rated credits have widened marginally. - Credit quality improvements: - Since the beginning of the third quarter, eight countries in the EMBIG universe received ratings upgrades (against no downgrades), including Turkey, Brazil, and Venezuela; Brazil and Venezuela received upgrades from all three major ratings agencies. - Technical and flow factors: - Long-term “strategic” inflows into the asset class remained robust and are expected to reach $10 billion for the year, and remain strong next year. - Net inflows from U.S.-based dedicated emerging market debt funds resumed in the third quarter, with modest outflows in October. - External emerging market financing needs for 2004 largely completed; large amortization and coupon payments expected to provide technical support in the near term. - Leverage: - Degree of leverage in the asset class appears to be on the increase, though below previous highs. - Evidence that the April–May sell-off led investors to reduce highly leveraged positions, which appear to have been rebuilt. ### Surging Primary Issuance into a Receptive Market - Emerging market gross issuance is set for one of the strongest years on record, driven by investor appetite from the search for yield. - Two noteworthy primary market developments: - The share of euro-denominated bond issuance has increased, reflecting renewed demand from European institutional investors and diversifying funding sources. - Some emerging market issuers (notably Colombia and Uruguay) issued bonds denominated in local currencies on international capital markets—small in size and limited in number—but steps toward overcoming the “original sin” of issuing international bonds in local currencies. - Market capacity for 2005 issuance: - With part of the estimated gross sovereign external bond issuance plans for 2005 already pre-financed, the market appears to have ample capacity to absorb next year’s expected issuance of nearly $40 billion, compared with $52 billion of sovereign bonds placed in 2004 through end-October. ### Key Figures and Statistics (preserved exactly as in the source) - Emerging market strategic inflows expected to reach $10 billion for the year. - Expected sovereign external bond issuance for 2005: nearly $40 billion. - Sovereign bonds placed in 2004 through end-October: $52 billion. - Table 2 aggregated totals (as of October 31): - Asia requirement: 5,800; Funded: -; Remaining: 5,800 - Emerging Europe requirement: 18,355; Funded: -; Remaining: 18,355 - Latin America requirement: 14,750; Funded: 4,783; Remaining: 9,967 - Middle East & Africa requirement: 5,250; Funded: -; Remaining: 5,250 - Total requirement: 44,155; Funded: 4,783; Remaining: 39,372 - Selected country sovereign external new issuance estimates in 2005 (US$ mn), exact figures preserved where provided: - Brazil: Requirement 6,000; Funded 1,200; Remaining 4,800 - Chile: Requirement 600; Funded -; Remaining 600 - China: Requirement 1,000; Funded -; Remaining 1,000 - Colombia: Requirement 1,500; Funded 500; Remaining 1,000 - Croatia: Requirement 850; Funded -; Remaining 850 - El Salvador: Requirement 250; Funded -; Remaining 250 - Hungary: Requirement 2,400; Funded -; Remaining 2,400 - Indonesia: Requirement 500; Funded -; Remaining 500 - Israel: Requirement 750; Funded -; Remaining 750 - Lebanon: Requirement 2,000; Funded -; Remaining 2,000 - Malaysia: Requirement 500; Funded -; Remaining 500 - Mexico: Requirement 2,000; Funded 1,500; Remaining 500 - Morocco: Requirement 500; Funded -; Remaining 500 - Pakistan: Requirement 500; Funded -; Remaining 500 - Panama: Requirement 300; Funded -; Remaining 300 - Peru: Requirement 1,000; Funded -; Remaining 1,000 - Philippines: Requirement 1,800; Funded -; Remaining 1,800 - Poland: Requirement 4,800; Funded -; Remaining 4,800 - Romania: Requirement 600; Funded -; Remaining 600 - Russia: Requirement 3,000; Funded -; Remaining 3,000 - Slovak Republic: Requirement 1,205; Funded -; Remaining 1,205 - South Africa: Requirement 1,000; Funded -; Remaining 1,000 - South Korea: Requirement 1,000; Funded -; Remaining 1,000 - Thailand: Requirement 500; Funded -; Remaining 500 - Turkey: Requirement 5,500; Funded -; Remaining 5,500 - Ukraine: Requirement 1,000; Funded -; Remaining 1,000 - Venezuela: Requirement 3,000; Funded 790; Remaining 2,210 - Table 1 highlights (gross issuance and net issuance aggregates): - Year-to figure for gross issuance by asset: 222.0 (in billions of U.S. dollars) - Net issuance by asset, year-to: 119.5 (in billions of U.S. dollars) - Net issuance by region, Asia year-to: 53.4; Latin America year-to: 1.3; Europe, Middle East, Africa year-to: 48.5 - Secondary markets snapshot: - US 10 yr. Treasury Yield (yield in %): values listed include 5.12, 5.05, 3.82, 4.25, 3.80, 3.52, 3.94, 4.25, 3.84, 4.58, 4.12, 4.18, 4.12, 4.03, 4.18, 4.18 (as presented) - EMBI Global (spread in bps) and Merrill Lynch spreads shown in Table 1 series. --- _Source: https://www.imf.org/-/media/files/publications/fmu/1104.pdf_