(Updated at 0908 GMT)

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Ghana reaches debt restructuring agreement in principle

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Investors bullish on India bonds, Morgan Stanley says

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World Bank announces $700 mln in financing for Egypt

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Stocks off 0.3%, FX flat

By Johann M Cherian

June 24 (Reuters) - Caution dominated the mood across

emerging markets on Monday, ahead of local central bank policy

decisions lined up through the week, while investors awaited

cabinet appointments in South and assessed the impact of latest

sanctions on Russia.

MSCIEF's index tracking EM stocks slipped 0.3%,

while an index tracking currencies was flat.

Turkey's lira slipped 0.3% against the dollar,

trading at near all-time lows, with economists expecting the

local central bank to stay put on interest rates at 50% later in

the week.

Czech's koruna however, was flat against the euro

ahead of the regional central bank's decision on Thursday where

borrowing costs are expected to be reduced by 25 basis points to

5%.

Also on tap through the week are monetary policy decisions

out of Philippines, Morocco, Jamaica and Mongolia.

In Africa, the rand slipped 0.7%, after trading flat

for nearly three-straight sessions, while yield on the country's

benchmark 2030 government bond climbed over 11 basis

points to 9.8% as traders awaited the newly formed government of

national unity's (GNU) cabinet appointments.

Paul McNamara, investment director, at GAM Investments said

that, with valuations cheaper than peers South African assets

have potential to outperform from here.

However, "any new government will have very limited

political capital for "orthodox" policies... the plan and

personnel are likely to be given a pass and concerns are about

what can be realistically implemented."

The local currency and equity index have recovered

from losses in early June, following national election results

where the African National Congress lost parliamentary majority

it held for three decades.

Elsewhere, the European Union agreed on a new package of

sanctions against Russia over its war in Ukraine, which included

a ban on reloading Russian liquefied natural gas in the EU for

further shipment to third countries. The rouble

strengthened to 87.95 against the greenback, as per LSEG data.

Investors tracking the JPMorgan Emerging Market debt index

are bullish on India and had allocated 3.6% of holdings to the

country's bonds as on end-May, ahead of their inclusion on the

index this week, Morgan Stanley said. Yield on the South Asian

country's benchmark 10-year bond stood at 6.95%.

Elsewhere, the World Bank announced a $700 million of budget

support for Egypt, that is designed to help the north African

country boost private sector participation, macroeconomic and

fiscal resilience, and a greener growth trajectory. However, the

pound weakened 0.7%.

Ghana's cedi was little changed after the west

African country's government reached an agreement in principle

with bondholder groups to restructure its international debt.