February8,202110:29AMGMTJames.Lord@morganstanley.comJaiparan.Khurana@morganstanley.comFilip.Denchev@morganstanley.comSimon.Waever@morganstanley.comAndres.Jaime@morganstanley.comIoana.Zamfir@morganstanley.comGilberto.Hernandez-Gomez@morganstanley.comDiego.Herrera@morganstanley.comMin.Dai@morganstanley.comBelle.Chang@morganstanley.comJingzhong.Zhang@morganstanley.comMORGANSTANLEY&CO.INTERNATIONALPLC+JamesKLordSTRATEGIST+44207677-3254JaiparanSKhuranaSTRATEGIST+44207677-6671FilipDenchevSTRATEGIST+44207677-3166MORGANSTANLEY&CO.LLCSimonWaeverSTRATEGIST+1212296-8101AndresJaimeSTRATEGIST+1212296-5570IoanaZamfirSTRATEGIST+1212761-4012GilbertoAHernandez-GomezSTRATEGIST+1212296-8940DiegoHerreraSTRATEGIST+1212761-1046MORGANSTANLEYASIALIMITED+MinDaiSTRATEGIST+8522239-7983BelleChangSTRATEGIST+8523963-0668JingzhongZhangSTRATEGIST+8522239-1528EMresiliencecontinuesRussia:Enoughwaiting,timetobuyRUBChile:Gettingrealwith5s10sUFxCAMflattenersSriLanka:RepaymentofIndiaswaplineputsfurtherpressureonFXreservesMexico:LongCAD/MXNGlobalEMStrategistGlobalEMStrategist||GlobalGlobalReflation'sMixedBlessingsGlobalmarketscontinuetheirreflationarytrend,whichpresentsmixedblessingsforEMassets.WestayneutralbuthaveplentyofRVtradestooffer,withabiastowardshighyieldexposureinFXandcredit.EMassetscontinuetobebuffetedbyrisingUSinterestrates,mostlyweakdomesticfundamentalsandaslowvaccinationrolloutontheonehand,andbenefitsofaglobalgrowthrecovery,astableUSDandrisingcommoditypricesontheother.ThisleavesusneutralonEMFX,ratesandcreditandfocusedonrelativevaluetrades.InFX,weinitiatealongRUBpositionversusa50-50basketofEURandUSDandcontinuetorecommendshortUSD/INRandlongCNHversusEURandJPY.WealsoaddedalongCAD/MXNposition.WeremainneutralonthebroadUSDandbelievethattheglobalbackdropisonewhereUSDcouldperformwellversuslow-yieldersbutlesssoagainsthigher-betaFX(seehere).Inrates,werecommenda5s10sflattenerinSAGBsandadda5s10sflattenerinChiletoo.WeremainpadthefrontendinPolandandreceivedCzechFRAsforthenextfewCNBmeetings.Westaypaidbot...
