Debt Markets Today - December 2, 2021. Russia Basic Sector Output, Weekly Inflation; OFZ Auction Results; TMK Results

CIS EUROBOND MARKETRussian long issues remained well bid yesterday amid a further rally in long US Treasuries, whose yields fell 4-7 bps. The Russia 35 and Russia 42 led with gains of 0.8 pp apiece. The Gazprom 34 and Gazprom 37 advanced 0.8-0.9 pp in price. Across the rest of the region, the Azerbaijan 32 firmed 0.5 pp, followed by the Armenia 29 and Armenia 31 (0.3-0.5 pp).GOVERNMENT DEBTTrading in the OFZ market was light yesterday, with volumes coming in at R22 bln, of which almost R8 bln went through in the 3y floating-coupon OFZ. By the end of the day, the curve saw yields climb 1-5 bps in the wake of lackluster auction results yesterday. In addition, up to the close of OFZ trading, UST yields were rising.STORIES> Basic sector output growth accelerates to 6.5% y-o-y in October, supported by recovery in agriculture> Weekly inflation accelerates to 0.46%> Bi-Weekly FICC Strategy: Fed turns more hawkish> Neutral-to-weak results at weekly OFZ auctions> TMK reports improved results