Debt Markets Today - November 28, 2018

CIS EUROBOND MARKETRussian Eurobonds stabilized amid limited volumes yesterday and an improved global backdrop. The long-dated Russia 27, 28 and 47 ended up moving 0.2-0.3 pp lower, whereas the rest of the segment closed essentially unchanged. The market turned its attention to the primary market, where Russia unexpectedly decided to place a new euro-denominated Eurobond (see our story below). GOVERNMENT DEBTOFZ yields retreated 8-11 bps early in the day yesterday but then started rising following news that the EU was considering new sanctions. By the close, yields in the 3-8y segment were 6-10 bps lower, while those on longer-dated issues had shed 3-5 bps. Short-dated paper (1-3y) also closed 3-5 bps lower, with the exception of the 2y OFZ 26214 (May 2020, 6.40%), which the Finance Ministry again included in its list of bonds to be sold. The issue was yielding 7.96% by yesterday's close.STORIES> Finance Ministry returns OFZ 26214 to on-the-run list> Sistema releases 3Q18 IFRS results> Russia raises EUR1 bln in Eurobond placement> We reiterate our recommendation to buy the CPI-linked OFZ 52001> Nostrum Oil sharply downgrades production guidance> Kazakh Temir Zholy places Swiss franc-denominated Eurobond