Debt Markets Today - March 10, 2021

CIS EUROBOND MARKETRussian sovereign Eurobonds pared back Monday's losses yesterday amid a sharp drop in US Treasury yields. The biggest gains were seen at the long end of the curve (+1.3-1.5 pp), where investors were covering short positions.GOVERNMENT DEBTOFZs got off to a good start yesterday. Yields came down as much as 2-4 bps amid a benign global backdrop and a fairly sharp decline in US Treasury yields. Another source of support was Finance Minister Anton Siluanov's confirmation that the ministry intends to reduce its borrowing this year. However, the ministry's subsequent auction announcement reversed the early decline in yields. The Finance Ministry opted to increase its supply of nominal issues, announcing it will offer the 7y OFZ 26236 (May 2028) and 15y OFZ 26233 (July 2035) at today's auction. The decision caused yields to rise 2-3 bps. While the Finance Ministry will keep supply elevated, we think it is not likely to offer much in the way of premiums to the secondary market at its auctions (see yesterday's Rates Weekly ).STORIES> Comments by CBR Deputy Governor Zabotkin> OFZ Weekly Flows: Foreign flows seem balanced> Nornickel updates on accidents; no production loss estimates yet> TMK 4Q20, 2020 results, 86.54% stake purchase in Chelpipe> NBK keeps base rate at 9.0%, takes on more hawkish tone> Inflation in Kazakhstan stays at 7.4% y-o-y in February