Debt Markets Today - November 12, 2018

CIS EUROBOND MARKETGlobal risk appetite continued to decline on Friday, and Russian sovereign Eurobond quotes continued to slide. The Russia 43 was the biggest faller, slipping 0.5 pp to 103.4% (YTM 5.6%, Z-spread 232 bps), followed closely by the Russia 42 and 47.GOVERNMENT DEBTThe selloff in the OFZ market intensified on Friday morning after Konstantin Vyshkovsky, the head of the Finance Ministry's debt department, said the ministry is prepared to offer only a "technical" premium at OFZ auctions. This is despite offering a 5 bp premium in each of two issues at the last auction. It appears that many market players did not entirely understand the comments. He also attempted to clarify his comments made the previous day by saying that the ministry would seek to limit itself to minimal volumes to reduce the risk of the auctions being canceled and that it would increase the volumes on offer once the market uncertainty has dissipated.STORIES> Russian transport: Sector update> OFAC extends deadline on Rusal and En+ Group sanctions for sixth time> Naftogaz Ukrainy Eurobond placement: Comments on pricing> Inflation slows to 4.9% y-o-y in October