Debt Markets Today - October 4, 2018

CIS EUROBOND MARKETRussian sovereign issues opened higher yesterday but later came under pressure from rising US Treasury yields and ended up finishing largely unchanged.GOVERNMENT DEBTOFZs faced selling right from the start yesterday morning. The pressure only intensified following weak auction results, as the Finance Ministry managed to place only R7.4 bln out of R10 bln offered in the 5y OFZ 26223, which was placed at a weighted average yield of 8.29% and a 2-3 bp premium over the secondary market. Meanwhile, the second auction was cancelled. Yields rose 10-12 bps in the 3y+ segment. Later, reports that the ministry might not tap the OFZ market again before year-end if conditions remain inclement helped to bring yields lower. They closed 6 bps higher in the belly and 3-4 bps higher at the long end. Volumes came in at R21 bln. STORIES> Russian weekly inflation remains at 0.1%> Record-high FX purchases announced, to be conducted off-market> Global Ports announces Eurobond tender offer results> OFZ auctions resume but demand subdued