Debt Markets Today - March 3, 2021

CIS EUROBOND MARKETEven though US Treasury yields remained fairly stable yesterday, the mood in the Russian sovereign Eurobond market was moderately downbeat. Nonetheless, the only issues to post notable losses were the Russia 43 (-0.3 pp) and Russia 47 (-0.4 pp), and by the evening buyers began to emerge in the middle and at the long end of the curve. GOVERNMENT DEBTVolatility in the OFZ market was somewhat elevated yesterday. Yields jumped 5 bps early in the session amid global risk aversion. However, media reports that the pending US sanctions would not affect Russian markets, combined with the announcement that the Finance Ministry would offer up defensive issues at today's auction (see yesterday's Rates Weekly ), triggered a reversal, causing yields to fall by 1-5 bps in the 6-7y segment and by 5-8 bps out further along the curve. We expect yields on long dated OFZs to continue to fall in the near term (see our trade recommendation below).STORIES> New US sanctions: Few market implications now, still long-term risks> OPEC+ meeting preview> Alrosa 4Q20 IFRS review: Debt decreases substantially> Opening tactical recommendation to buy 20y OFZs