Debt Markets Today - June 2, 2021. Swaps Trade Idea, CBM Posts Upbeat 1Q21 Results, DME Airport Releases Expectedly Weak 2020 Numbers

CIS EUROBOND MARKETTrading in the Russian sovereign Eurobond market yesterday was lively. Even with UST yields rising, the spreads were narrowing, supported by demand from locals. However, in the afternoon, with the New York open, nonresident selling intensified, and by the close prices had barely changed on the day. The most actively traded issues were at the long end, maturing in 2042, 2043 and 2047.GOVERNMENT DEBTAhead of the Finance Ministry announcement of which OFZs it would offer at today's auctions, and against the backdrop of a weakening ruble, OFZs ticked up 1 bp in yield across the curve. After the announcement that R42 bln in a 4y issue and R20 bln in a 10y issue would be offered, yields in the medium-term segment in the secondary market rose 4-6 bps, while other issues did not change significantly. Turnover was R15 bln.STORIES> Russia Economic Monthly: Fast recovery in labor market creates risk of wage inflation> If CBR turns even more hawkish, local corporate bids for payer swaps could pick up> DME Airport: 2020 numbers expectedly weak but dividend retained> Credit Bank of Moscow reports upbeat 1Q21 IFRS numbers> Gazprom reports another strong monthly operating update> Ukrainian economic activity improves in April on low base> Kazakh GDP shrinks 1.5% y-o-y in 1Q21> Kazakh inflation climbs to 7.2% y-o-y in May