Debt Markets Today - November 2, 2021. Russia ESG Goals, Fed Preview, Rusal Reorganization

CIS EUROBOND MARKETRussia's sovereign curve traded in the red yesterday in response to higher US Treasury yields and a pickup in geopolitical risks. The Russia 47 widened 3 bps in yield (-0.7 pp in price), while yields along the rest of the curve climbed 1-2 bps. In the non-investment grade segment, Ukraine was the main laggard, the sovereign curve shifting 10-20 bps higher.GOVERNMENT DEBTThe inversion of the OFZ curve eased somewhat yesterday, as yields rose 2-9 bps at the short end and 10-13 bps at the long end. In our view, investors are taking into consideration the risks of another high weekly inflation reading tomorrow and further ruble depreciation. Against this backdrop, the OFZ market had one of the worst performances yesterday among EM local government debt markets, matched only by Brazil. Trading volumes on the Moscow Exchange totaled R53 bln, which is quite high considering that a long holiday weekend is looming.STORIES> Russia plans 60% cut in carbon emissions by 2050> Federal Reserve Preview: Mounting inflation concerns> OFZ Weekly Flows: Nonresidents selling in belly, maintaining positions in 10y segment> En+ and SUAL Partners announce joint support of Rusal reorganization> Kazakhstan local rates: Downside for tenge looks limited