Debt Markets Today - March 20, 2018

CIS EUROBOND MARKET
Selling dominated in Russia’s sovereign Eurobond market yesterday. Underperforming the market were the Russia 42 and 43, which shed 0.6 pp apiece. The new sovereign issue maturing in 2029 jumped 0.75 pp at the open on its first day of trading but then retraced back to the placement level by the close.

GOVERNMENT DEBT
Trading in the OFZ market yesterday was cautious with Wednesday’s Fed decision and Friday’s CBR decision both looming on the horizon. Trading activity was weak, and volumes were slightly below average. Some short papers saw decent demand. Those maturing in less than 3y fell 1-2 bps in yield, while the yield on the 3y OFZ 26205 dropped 7 bps. Certain longer issues came under selling pressure, adding 1-2 bps in yield.


STORIES
> Putin wins new term - what are the next steps?
> Russian industrial production rises by 1.5% y-o-y in February
> Federal Reserve preview: Powell to pull the trigger
> Finance Ministry registers a new CPI linker for likely auction tomorrow
> CBR could pump another R1 trln into Rost Bank and TRUST Bank
> Sovcomflot reports 4Q17 IFRS results
> MTS 4Q17 IFRS: Good results; capex guidance includes Yarovaya law
> Metinvest announces buyback tender and forthcoming new issue
> Ukraine's new central bank chairman presents three-year strategy