Debt Markets Today - March 10, 2020

CIS EUROBOND MARKETRussian sovereign Eurobonds retreated yesterday given the selloff on global markets and tumbling oil prices. The Russia 42 and 43 lost 6 pp apiece, while intermediate issues slid 4-5 pp. GOVERNMENT DEBTOn Friday morning, yields surged 20-33 bps ahead of the long weekend in Russia as risk appetite took a dive and there was a dearth of buyers. The opening in New York only served to intensify the panic, leaving yields 30-38 bps higher on the day. Volumes began to climb in the afternoon, when significant local bids appeared and stopped yields from rising. Volumes were well down on recent levels at R43 bln. We do not expect the Finance Ministry to hold an OFZ auction tomorrow.STORIES> Oil market paradigm set for profound change> Russian inflation slows to 2.3% y-o-y in February> Sharp drop in oil price to spur FX selling from the National Wealth Fund> Oil price drop and weak EM FX: Credit implications for FSU Eurobonds> Oil price drop and weak EM FX: Technical implications for FSU bonds> Closing all recommendations to buy sovereigns> Changes to corporate Eurobond recommendations> Kazakh central bank hikes policy rate to 12% amid falling oil prices