Debt Markets Today - November 9, 2020

CIS EUROBOND MARKETThe sharp growth in US Treasury yields on Friday pressured long-dated Russian sovereign Eurobonds. The weakest result in the market was shown by the Russia 47, which shed 0.7 pp in price. The Russia 43 was next in line, with a 0.4 pp drop. GOVERNMENT DEBTThe rally in the OFZ market that began on Thursday continued in the first half of Friday's session, with yields dropping another 8 bps. However, at these levels bids from nonresidents began to dry up, and OFZs traded flat for the rest of the day. Trading volumes were again above average at around R30 bln. The main focus of investors in the OFZ market right now is this week's auction, after which it may become clear whether the Finance Ministry intends to exceed its R2 trln borrowing target for 4Q20. Since the ministry is already 95.6% of the way there, it is likely to shift its focus to nominal issues at this week's auction.STORIES> Fathers and their Generation Z sons> Inflation accelerates to 4.0% y-o-y in October> Changes to our OFZ recommendations following the US election