Debt Markets Today - June 11, 2021. City of Moscow 5y Local Bond Placement, Alrosa May Sales, Russian Budget Data for May, Ukrainian Inflation

CIS EUROBOND MARKETYesterday, Russian sovereign Eurobonds again refused to react to the sharp drop in US Treasury yields. Since investors were mostly looking ahead to the US inflation data, trading activity was low and prices didn't move much at all. GOVERNMENT DEBTFollowing the strong demand for the 10y OFZ auctioned on Wednesday, early yesterday the most action was seen in long-dated OFZs. However, the main movements came in the evening after the US inflation report. Risk sentiment in global markets rose, while the US 10y yield moved 6 bps lower. As a result, yields on OFZs maturing in longer than 6y shifted 2 7 bps lower, outperforming most EM peers. Short dated issues, however, remained under pressure, adding 3-5 bps in yield. Trading volumes totaled R24 bln, with the briskest trading (R4.7 bln) coming in the 9y inflation linker, which climbed 0.2 pp in price yesterday on the back of Wednesday's auction.STORIES> Improving economy and higher oil prices boost budget revenues in May> Alrosa reports May sales results> City of Moscow places 26% of offering in 5y local bonds> Inflation in Ukraine surges to 9.5% y-o-y in May due to low base