Debt Markets Today - June 8, 2021. Russian Inflation Accelerates in May, OFZ Market Sees Modest Nonresident Inflow, Kazakhstan Plans Return to Russian Local Market, NBK Keeps Rates at 9%

CIS EUROBOND MARKETTrading in Russian sovereign Eurobonds was inactive yesterday. That said, following the sharp decline in US Treasury yields on Friday, quotes on long issues rose 0.25-0.30 pp. Activity was also low in euro denominated Russian sovereigns.GOVERNMENT DEBTEarly in yesterday's trading, the OFZ curve continued to flatten. Short-term paper added 2-4 bps in yield, while issues longer than 5y shed 1 bp in yield in response to the decline in dollar yields and the ruble's advance at the end of last week. However, later in the session yields at the long end reversed course, likely due to investors trimming back their positions ahead of Wednesday's auction, where 10y paper is very likely to be offered. At the end of the day, yields were up 1 4 bps across the curve. Trading volumes on the Moscow Exchange totaled R13 bln, with roughly half of that attributable to short-dated issues with a fixed coupon.STORIES> Russian inflation accelerates to 6.0% y-o-y in May> OFZ Weekly Flows: Modest nonresident inflow> Kazakhstan plans return to Russian local market with ruble placement> National Bank of Kazakhstan keeps key rate at 9%