Debt Markets Today - March 15, 2018

CIS EUROBOND MARKET
Selling prevailed in the Russian sovereign Eurobond market yesterday, driven both by the upcoming placement and by foreign political events. The Russia 28 lost the most, falling 0.4 pp to 167.25% (YTM 4.5%, Z-spread 167 bps). The Russia 47 lost nearly the same amount to close at 100.99% (YTM 5.2%, Z-spread 228 bps).

GOVERNMENT DEBT
Things were rather quiet in the OFZ market early on yesterday, but UK Prime Minister Theresa May’s announcement of measures against Russia in response to the poisoning of Sergei and Yulia Skripal sparked a wave of selling in the 5y+ segment, pushing yields 3-4 bps higher. As a result, trading volumes were significantly higher than average yesterday.


STORIES
> Prices in Russia up 0.1% over the previous week
> Skripal events negative for sentiment but lacking solid market drivers
> CBR issues data on foreign share in select OFZ issues
> CBR publishes January data for foreign OFZ holdings
> Global Ports 2017 IFRS results: weak, as expected
> Gazprom places euro-denominated Eurobonds
> Halyk Bank 4Q17 IFRS preview
> Georgian central bank leaves rate unchanged; cuts could be on the way