Debt Markets Today - June 18, 2021. Russian Weekly Inflation Print, Ukravtodor Places Eurobond, National Bank of Ukraine Holds Rates

CIS EUROBOND MARKETFollowing the sharp rise in US Treasury yields in the wake of the Fed decision, Russian sovereign Eurobond quotes saw negative dynamics intensify yesterday, with the largest declines coming in the Russia 28 (down 0.4 pp) and the Russia 42 and 43 (down 0.3 pp each).GOVERNMENT DEBTFollowing the sharp growth in US Treasury yields overnight Wednesday into Thursday, OFZ yields surged by 5-7 bps at the open yesterday. However, thanks to strong demand from nonresidents and a rally in long-dated US Treasuries (tenors over 10y yielded 7-12 bps lower yesterday), OFZs in the 5y and longer segment were able to fully retrace the early losses. Yields on 5-6y paper dropped 1-4 bps, while longer-dated paper yielded 3-7 bps lower. Trading volumes on the Moscow Exchange totaled R32 bln, which is more than 1.5 times the average volume over the last month. The most active trading came in mid-dated OFZs in which R15 bln changed hands. Meanwhile, other local-currency EM bonds showed a mixed performance on the day.STORIES> Russian weekly inflation comes in at 0.1%> Bi-Weekly FICC Strategy: Improving geopolitical backdrop and rising oil supportive for Russian assets> Ukrainian government agency Ukravtodor places $700 mln Eurobond due in 2028 at 6.25%> Buy Russia 47 versus dollar swaps> Ukrainian National Bank keeps key rate at 7.50%, seeing only temporary inflation pressures