Debt Markets Today - October 24, 2019

CIS EUROBOND MARKETRussian sovereign bonds advanced yesterday, mainly in the belly of the curve, amid a decline in US Treasury yields. The Russia 28 led the way, climbing 0.3 pp.GOVERNMENT DEBTOFZ yields did not move much yesterday morning. However, following the auction for the 10y OFZ 26228, demand strengthened at the long end and yields in this segment eased by as much as 2-3 bps. As we had expected, the auction found healthy demand given elevated nonresident interest in long-dated paper in recent days. Bids totaled R79 bln, and the ministry placed the full R30 bln offered with a 2 bp discount to the secondary market at a weighted average yield of 6.49%. However, by the evening yields snapped back to where they opened and most closed largely flat. They were pressured by the ruble performing weaker than other EM currencies and the latest Russian weekly inflation, which was reported at 0.1% after four straight weeks of no growth. Trading volumes totaled R30 bln. STORIES> Russian weekly inflation rebounds to 0.1%> Despite the sanctions, FX borrowing target in budget not changed