Debt Markets Today - January 26, 2022. Updated IMF Growth Outlook, Metalloinvest Operating Results, Fed Preview

CIS EUROBOND MARKETRussian sovereign Eurobonds continued to struggle yesterday amid a lack of new triggers ahead of what will be an eventful day today. The belly of the Russian curve underperformed, with the Russia 35 posting a 0.9 pp loss. The Russia 47 was the top performer with a 0.3 pp gain. The focus in markets today will be on the FOMC meeting and the Normandy-format (Germany, Russia, Ukraine and France) negotiations on the situation in Ukraine, which could lead to an ease in geopolitical tensions and potentially halt the recent selloff. GOVERNMENT DEBTThe OFZ market gapped 5-7 bps lower in yield shortly after the open yesterday amid a recovering ruble, but reversed course in the second half of the session as nonresidents ramped up selling. Yields closed 2-6 bps wider versus the Monday level, with the exception of the 10y OFZ 26239 (July 2031), which climbed 9 bps. Moscow Exchange trading volumes were R33 bln, on par with the 1-month daily average. There was no common trading pattern across other EM local debt markets, though they mostly outperformed OFZs.STORIES> IMF downgrades global GDP growth forecast for 2022> Federal Reserve Preview: Poised for a hawkish surprise?> Metalloinvest publishes operating results for 4Q21 and 2021