Debt Markets Today - August 5, 2019

CIS EUROBOND MARKETFalling global risk appetite and renewed talk of US sanctions against Russia pushed Russian sovereign Eurobond quotes lower on Friday. Nonresidents were mainly selling, though this was somewhat offset by buying activity on the part of local accounts. The Russia 29 (-0.4 pp) fared the worst, while the Russia 42 (+0.5 pp) fared the best. GOVERNMENT DEBTOFZ yields climbed throughout Friday's session following the announcement that Donald Trump had signed off on more sanctions against Russia and a drop in global risk appetite stemming from news that the US will introduce 10% duties on $300 bln worth of Chinese imports on September 1. Nonresidents were selling throughout the day, while locals were both buying and selling. Yields closed 5-8 bps higher in the segment up to 5y and 11-13 bps higher further along the curve. The 2s10s spread widened from 33 bps to 51 bps over the week, the highest level since the start of June. Volumes totaled R50 bln, with the OFZ 26215 and 26226 seeing the most action.STORIES> Russia Economic Monthly: Budget to drive economic growth in 2H19> US announces new CBW sanctions; impacts look slight> US announces new measures on Russian sovereign debt> August FX/ruble flows