Debt Markets Today - December 10, 2020

CIS EUROBOND MARKETRussian sovereign Eurobonds consolidated yesterday, most managing to close with modest gains despite a rise in benchmark yields. Right before trading wrapped up in Moscow, the US 10y yield jumped 3 bps, though this triggered only a muted response in Russian sovereigns, their yields moving only 1 bp in either direction. The Russia 42, 43 and 47 all added 0.1 pp in price yesterday, while their spreads to the UST curve narrowed by 4 bps. GOVERNMENT DEBTOFZs traded flat in the first half of yesterday's session, but after the auction results were announced yields on long-term issues climbed 1-3 bps. The 15y OFZ 26233 (July 2035), for example, added 3 bps in yield. Trading volumes were down again, totaling R24 bln.STORIES> Economy to rebound in 2021, but challenges on the horizon> Consumer prices in Russia rise 0.2% last week> Current account turns to deficit of $0.8 bln in November> Fixed income 2021 preview: Unmasking opportunities> OFZ Auction Results: Demand remains subdued> Inflation in Kazakhstan climbs to 7.3% y-o-y in November> Belarusian GDP drops 1.1% y-o-y in 10m20