Debt Markets Today - June 4, 2021. Sizing up the Swings in Belarusian Sovereigns, Russia to Remove Dollar Assets from NWF, Nordgold Announces Plans for re-IPO

CIS EUROBOND MARKETWith the resumption in the rise in US Treasury yields, Russian sovereign Eurobonds found themselves under pressure for a large part of the day yesterday. The bulk of the selling was seen in the Russia 47 (down 0.3 pp in price), while the euro-denominated issues also moved lower (the Russia 32 E shed 0.2 pp). GOVERNMENT DEBTThe OFZ curve continued to bear-flatten yesterday amid hawkish comments from CBR Governor Elvira Nabiullina. She pointed out that the more stable components of inflation continued to rise at a fairly quick pace and also that inflation expectations have been elevated for several months now. She added that the CBR should try to avoid an inflationary spiral, which she believes will require policy normalization. She went on to say that waiting too long to normalize policy could lead to the CBR eventually being forced to raise rates higher and faster than would otherwise be the case. Later, Deputy CBR Governor Ksenia Yudaeva remarked that the main options the CBR would consider at its upcoming meeting are 25 bp and 50 bp key rate hikes.STORIES> Russia to remove dollar assets from NWF> Nordgold announces plans for re-IPO> Sizing up the swings in Belarusian sovereigns