Debt Markets Today - July 2, 2021. Potential Revision of CBR Inflation Target, Russian Economic Activity in May, Ruble Outlook for July, Gazprom 1H21 Operating Update

CIS EUROBOND MARKETRussian sovereign Eurobonds fell 0.2-0.4 pp in price yesterday, with trading volumes concentrated in the Russia 47. As for the euro-denominated issues, demand continued to predominate, though it was not all that strong.GOVERNMENT DEBTYesterday, the OFZ curve continued to flatten. Yields climbed 1-2 bps at the short end but dropped 1-2 bps at the long end. Another catalyst for this was comments by two key CBR officials, Alexei Zabotkin and Alexander Morozov, that the central bank was going to carry out a deep analysis of monetary policy and that, upon the conclusion of this review, it might lower its inflation target below 4% (see our story below). Trading volumes on the Moscow Exchange totaled R26 bln.STORIES> Economic activity soars in May> July Ruble/FX Flows: Ruble to remain resilient, could strengthen at month-end amid heavy exporter FX sales> CBR could consider downward revision of inflation target> Gazprom 1H21 operating update: Non-CIS gas exports up 26% y-o-y> VEON sells stake in Algerian operator Djezzy