Debt Markets Today - March 26, 2021

CIS EUROBOND MARKETRussian sovereign Eurobonds ended the day little changed in price for the most part. Buying predominated at the long end of the curve, while investors were trimming positions in shorter issues. The only papers to register a significant price change were the Russia 43 and 47, which added 0.5 pp apiece.GOVERNMENT DEBTThe OFZ market continued to recover after the sharp losses at the beginning of the week due to the situation in Turkey, the selloff in EM local debt and sanctions concerns. Yields fell by as much as 12-15 bps in the middle of the curve and at the long end, but eventually closed 10-12 bps lower for the day. Meanwhile, the yields of peers did not change much, which could mean yesterday's moves reflect a reduction in the geopolitical premium after it had spiked earlier in the week. In addition, the market seemingly did not react to the release of high weekly inflation (0.2%) on Wednesday, as it has already priced in 140 bps of rate hikes before the end of the year. Turnover yesterday amounted to R43 bln, with the largest volumes in the two longest nominal issues.STORIES> Household inflation expectations remain elevated> ESG Russia Company Handbook> Nonresident share in OFZ market eases to 22.7% in February> Gazprom provides updated outlook on European gas market> Sovcombank to acquire Vostochny Bank