Debt Markets Today - June 23, 2020

CIS EUROBOND MARKETWith US Treasury yields falling for most of the session yesterday, Russian sovereign Eurobonds at the long end again managed price gains. The Russia 43 and 47 outperformed, adding 0.9 pp and 1.1 pp, respectively, for the day.GOVERNMENT DEBTOFZs suffered a correction yesterday morning sparked by the weak outcome to the CBR's 1y repo auction (it placed just R5 bln out of the offered R400 bln). Some investors had expected local banks to use this instrument to fund the purchase of OFZs. The selloff intensified later after the Finance Ministry announced which issues it will offer today (tomorrow and July 1 have been declared public holidays in Russia, so the auctions have been brought forward by one day both this week and next). Today, the ministry will offer the 7y OFZ 26232 (October 2027) and the 15y OFZ 26233 (July 2035). The announcement caused yields in these issues to climb 17 bps, while other yields rose 6-15 bps. Turnover was noticeably down at just R15 bln.STORIES> Banks show weak demand at long-term repo auction yesterday> CBR releases banking sector data for May> Drop in investment dragged on Ukrainian GDP growth in 1Q20