Debt Markets Today - February 2, 2022. SUEK 2021 Results, Market Recaps

CIS EUROBOND MARKETYesterday morning, confirmation of the Lavrov-Blinken call later in the day and a call between UK PM Boris Johnson and Russian President Vladimir Putin today drove a cautious rebound in sentiment toward Russian assets, and Russian sovereign Eurobond quotes rose too. The fact that UST yields were sliding in the first half of the day was supportive as well. The Russia 29 and Russia 42 outperformed on the day, adding 0.5 pp and 0.4 pp, respectively. At the long end, demand from nonresidents emerged, while locals supported quotes in the belly of the curve. GOVERNMENT DEBTOFZs extended their gains yesterday amid an appreciating ruble. At one point, yields at the long end were trading 3-5 bps tighter, but they retreated a bit after the auction announcement. Yields ended the day 1-3 bps lower in the belly and at the long end and 2-7 bps lower at the short end. Again, mostly locals were on the buy side, but for the first time in a while internationals were also showing an interest in buying. Moscow Exchange reported R28 bln in total trading volume, which is close to the average level seen in recent months. The broader EM space was also well-bid yesterday thanks to the gains in EM currencies, with 10y benchmarks tightening 2-7 bps in yield.STORIES> SUEK publishes strong 2021 results