Debt Markets Today - July 11, 2019

CIS EUROBOND MARKETQuotes on Russian Eurobonds declined as much as 0.5 pp in the first half of the day yesterday in response to a further rise in global benchmark yields. However, Fed Chairman Jerome Powell's speech in the afternoon sparked a reversal in the bond markets, causing Treasury yields to drop sharply. A wave of buying late in the session allowed Russian sovereigns to pare their early losses, though most issues finished slightly lower in price. The Russia 29 was the worst performer with a 0.3 pp loss.GOVERNMENT DEBTYields on OFZs 7y and longer sank 2-3 bps early on in yesterday's session thanks to a strengthening in the ruble. Later on, following Russian weekly inflation data and Fed Chairman Powell's comments, the rally picked up, and by the end of the day medium-dated issues had shed 5-7 bps in yield, while long-term paper was yielding 2-4 bps lower. Bids from nonresidents set the tone. Trading volumes totaled R36 bln, including almost R8 bln in the OFZ 26226 and R5 bln in the OFZ 26227.STORIES> Russian weekly inflation was at 0.1% in July 2-8> Budget surplus of R1.6 trln in 1H19; May spending lowered by R132 bln> US House to consider amendment sanctioning new Russian sovereigns> CBR to lower corporate loan RWs; mildly positive for top lenders' capital> Rosneft, Neftegazholding to ask for extra tax breaks for planned JV> Consumer prices in Belarus down 0.1% in June> GOGC publishes 2018 IFRS results