Debt Markets Today - October 6, 2021. World Bank Updates Russian GDP Forecasts, Moody's Raises Nordgold Credit Rating

CIS EUROBOND MARKETPrices on Russian sovereign Eurobonds plummeted yesterday following further yield rises in the US 10y, which climbed 6 bps to 1.53%. The most aggressive selling was seen in the long-dated Russia 43 (-1.2 pp) and Russia 47 (-1.3). Medium-dated issues dropped 0.3-0.7 pp. GOVERNMENT DEBTThe recent selloff in the OFZ market continued yesterday as yields climbed another 10-12 bps. This was in line with movements seen in peer markets: the yields on the 10y paper of Mexico added 8 bps, while the Brazilian and Colombian benchmark bond yields rose 6-7 bps. Yields on UST in the 10-30y segment climbed 5 bps. The culprit behind all of these movements was the sharp rise in inflation expectations around the world. Just yesterday, the breakeven inflation rate, which is calculated based on inflation-linked bonds from the US, Germany and UK, surged 5-10 bps, while 5y inflation swaps in the eurozone reached 1.84%, the highest reading in six years.STORIES> World Bank updates Russian GDP growth forecasts; we find its 2022-23 estimates overly pessimistic> Moody's raises Nordgold credit rating to Ba1