Debt Markets Today - April 29, 2021

CIS EUROBOND MARKETYesterday, Russian sovereign Eurobonds came under significant pressure from a rise in US Treasury yields during much of the trading session. Amid low volumes, prices on Russian sovereigns moved 0.7-0.9 pp lower at the long end of the curve and 0.2-0.4 pp lower in the belly. GOVERNMENT DEBTOFZ yields moved higher again yesterday amid thin volumes (volumes totaled R19 bln yesterday). The initial impulse for the move higher was comments by CBR First Deputy Governor Ksenia Yudaeva, who said that the central bank was now seeing more persistent components in inflation. The weak result from yesterday's first auction also pushed yields higher, although the market stabilized following the second auction, at which the Finance Ministry opted not to offer a premium. For the day, both short- and long dated OFZs climbed 2-4 bps in yield. However, yields in the belly of the curve managed to remain flat thanks to demand from locals for the 5-7y segment of the curve. Nonresidents, meanwhile, continued to reduce their holdings in long-dated paper.STORIES> Weekly inflation remains high> CBR rhetoric, latest inflation data support 50 bp rate hike in June> Fed stays dovish but sees economic improvement, fewer risks> Bi-Weekly FICC Strategy> OFZ Auction Results: Finance Ministry cautious at second auction> DBK plans to tap market with new 10y dollar Eurobond