Debt Markets Today - June 19, 2018

CIS EUROBOND MARKETEM sovereign Eurobonds continued to weaken yesterday, with Russian securities no exception. Quotes gapped 0.5 pp lower at the open and continued to decline on insignificant volumes. The Russia 43 was the biggest loser, slipping 0.8 pp to 104.2% (YTM 5.6%, Z-spread 255 bps). The Russia 27 fell 0.4 pp to 95.4% (YTM 4.9%, Z-spread 191 bps).GOVERNMENT DEBTOffers continued to dominate in the OFZ market, yields jumping 26 bps at the short end and in the belly and 16 bps at the long end. Rising yields at the long end were capped by local demand. Turnover was above average, with the bulk (R14 bln) concentrated in the OFZ 26207 (February 2027, 8.15%) and R9 bln in the 15y OFZ 26221 (March 2033, 7.70%). Floaters slid by an average of 7 bps along the curve.STORIES> GDP growth driven by industrial production, finance and real estate> Industrial output climbs 3.7% y-o-y in May and 3.2% y-o-y in 5m18> EC extends Crimea sanctions, sector sanctions to be reviewed soon> Belarusian current account deficit widens to $1.3 bln in 1Q18> Azeri central bank cuts key rate by 100 bps to 10%