Debt Markets Today - July 29, 2021. Weekly Inflation at Zero; Strongest Weekly OFZ Auctions Since April; Alfa Bank Places 4y Ruble Eurobond

CIS EUROBOND MARKETBoth sovereign and corporate Russian Eurobonds traded in narrow ranges ahead of the Fed decision yesterday. Across the rest of the region, only Belarusian sovereigns saw quotes moves, gaining 0.4-0.6 pp in price (the market might be pricing in an expected loan from Russia in the wake of tax changes in Russia that affected Belarus - details about the loan have not yet been disclosed). Meanwhile, Armenian issues edged 0.2 pp lower amid an escalating conflict on the border with Azerbaijan, though a ceasefire was announced, which kept the bond quotes from weakening more.GOVERNMENT DEBTOFZ yields continued to move lower yesterday thanks to demand from nonresidents and locals alike. Another supportive factor was what turned out to be the strongest OFZ auction since April. OFZs in the 6-13y segment outperformed, with yields dropped 2-6 bps on the day. Yields at the short and long ends of the curve, meanwhile, closed mostly unchanged. Trading volumes on the Moscow Exchange were nearly two times the average daily volume over the past month, coming in at R44 bln, of which R34 bln was attributable to medium- and long-dated fixed-coupon OFZs.STORIES> Weekly inflation remains at zero> Basic sector output in June nearly flat versus May level> Fed hints at tapering, but still very cautious> Strongest weekly OFZ auctions since April> Alfa Bank places R10 bln in 4y ruble Eurobonds