Debt Markets Today - February 15, 2022. OFZ Weekly Flows, Market Recaps

CIS EUROBOND MARKETA souring geopolitical news flow led to another selloff across Russian assets yesterday, which again underperformed peers. While 10y EM sovereign Eurobonds lost 0.2-0.9 pp, the Russia 29 sank 2.1 pp. The middle of the Russian curve, which was actively supported by local bids in past weeks, gave up much more than other segments, with the Russia 28 and Russia 35 losing 3.7 pp and 3.5 pp, respectively. Meanwhile, the Russia 42 dropped 2.9 pp.GOVERNMENT DEBTThe pressure on OFZs ratcheted up again yesterday, as the market was digesting Friday's jump in the USD/RUB rate and hawkish messages from the CBR. The curve closed 35-45 bps wider, with all tenors up to the 12y mark crossing above 10%. The 10y OFZ 26218 (September 2031) settled at 10.07%. International accounts continued to reduce their positions, while the local bid only showed up occasionally. Trading volumes on the Moscow Exchange totaled R30 bln, in line with the average over the last month. Yields on most 10y EM local bonds ended the day 3-8 bps higher.STORIES> OFZ Weekly Flows: Nonresident outflows continue