Debt Markets Today - February 24, 2022. Military Conflict with Ukraine, CIS Eurobond Recommendation Changes, Russian Weekly Inflation

CIS EUROBOND MARKETOn Tuesday, expectations of new sanctions from the US, EU and UK, particularly restrictions on the debt market (see our report on the new sanctions that were eventually announced), fueled losses of 3.2-3.9 pp at the long end of the Russian sovereign curve. Yesterday, amid an illiquid market, the losses were even sharper, ranging from 4-8 pp in medium-term issues and 10-13.9 pp further out on the curve. This was all before Russian President Vladimir Putin announced the start of a military operation in Ukraine early this morning. The Moscow Exchange has already halted trading in several markets.GOVERNMENT DEBTOn Tuesday, OFZs remained under pressure alongside other Russian assets. The curve moved higher, with the long end rising to 10.5% and the short end to 11%. Trading volumes on the Moscow Exchange totaled R36 bln, above the one-month average.STORIES> Consumer prices in Russia rose 0.2% last week> Military conflict with Ukraine erupts; ruble and futures down more than 9%> CIS Eurobond recommendation changes