Debt Markets Today - June 6, 2019

CIS EUROBOND MARKETRising risk-on sentiment sent Russian sovereign Eurobond quotes 0.9-1.0 pp higher at the long end and 0.3-0.6 pp higher in the belly in the morning, where they remained for the rest of the session. Turnover was not high as sellers were thin on the ground.GOVERNMENT DEBTOFZ yields moved in sync with the sharp shift in sentiment seen across global markets yesterday. Early on yields were declining following the previous day's Fed rhetoric that indicated that a rate cut may be on the horizon. OFZ yields declined following the publication of weak US labor market data, which strengthened expectations of a rate cut. Later on some investors opted to take profit following the release of an upbeat ISM US nonmanufacturing index, which pushed volumes higher and pared back some of the earlier yield declines. Yields closed 6-7 bps lower in the 7y+ segment. Turnover totaled R39 bln, with the 5y OFZ 26227 seeing the most action (R9 bln).STORIES> Russian prices flat over the previous week> Inflation expectations decline only slightly in May> MMK places 5y dollar Eurobond> Socar publishes 2018 IFRS results