Debt Markets Today - January 11, 2022. Russia-US Talks Review; January Ruble/FX Flows Outlook; OFZ Weekly Flows; Silknet Plans New Bond

CIS EUROBOND MARKETThe mood in the CIS Eurobond market remained rather negative yesterday in light of the increasing geopolitical risks in the wake of the recent events in Kazakhstan. A sharp uptick in US Treasury yields exerted further pressure.GOVERNMENT DEBTYesterday, yields across the OFZ curve rose 15 bps on average, catching up to rising UST yields during the holidays and reflecting a sharp decline in demand to place free ruble liquidity on the part of market participants. As we had expected, issues 5y and shorter saw the most acute pressure, with yields in the segment jumping 20 bps. Long-dated fixed-coupon OFZs rose 10 bps in yield, broadly in line with EM peers. Turnover on the Moscow Exchange was low at only R9 bln.STORIES> Constructive remarks, reiterated material disagreements from Russia-US talks> January Ruble/FX Flows: Strong fundamentals, supportive flows to outweigh negative external risks facing ruble> OFZ Weekly Flows: Flows minimal last two weeks; outflows now expected to intensify> Silknet plans new bond to repurchase the existing one