Debt Markets Today - February 16, 2021

CIS EUROBOND MARKETDespite the US holiday, Russian sovereign Eurobonds trended downward yesterday, reacting to the late, sharp rise in US Treasury yields on Friday evening. The biggest losses came at the long end of the curve, with the Russia 47 and 42 losing 0.9 pp and 0.4 pp, respectively.GOVERNMENT DEBTOFZs attempted to recover yesterday morning amid the stronger ruble, yields decreasing 1-4 bps at the long end. However, later on they came under pressure once more, and yields ended 7-10 bps higher as investors were closing positions in anticipation of today's announcement about which issues the Finance Ministry will offer to the market tomorrow. Volumes were low at R22 bln, as US investors were absent due to a public holiday.STORIES> Industrial production down 2.5% y-o-y in January> Oil prices remain elevated after recent rally amid US energy crisis> OFZ Weekly Flows: Foreign investors further reduce holdings> MTS may place first social corporate bonds in local market> Change to our OFZ recommendation list> Ukraine: No new IMF tranche, but budget and debt covered in 1H21