Debt Markets Today - July 26, 2021. CBR Raises Rates 100 bps, Might Consider Further Hikes Should Inflation Go as Expected; NBU Delivers 50 bp Hike, More Could Follow

CIS EUROBOND MARKETSovereign Eurobonds in the region generally traded sideways on Friday amid stable benchmark rates. The main exception was Belarusian bonds, which shed 2 12 bps in yield terms on the day (the Belarus 23 added 0.2 pp in price). In the quasi-sovereign segment, the Kazakh Temir Zholy (KTZ) 42 outperformed, adding 0.5 pp in price. Meanwhile, the Eurotorg 25 slid 0.5 pp.GOVERNMENT DEBTThe CBR's 100 bp rate hike on Friday and comments led to a flattening out of the OFZ curve, as we had expected. Short OFZs came under pressure as before the decision the market had been pricing in only a 75 bp hike. The yield on issues up to 5y rose 2-7 bps, while longer OFZ yields declined 2 4 bps. Turnover was double the average for the last month at R42 bln.STORIES> CBR Review: Most hikes are now behind us, though more could yet come> National Bank of Ukraine raises key rate by 50 bps, more hikes could follow