Debt Markets Today - March 4, 2020

CIS EUROBOND MARKETRussian sovereign Eurobonds gapped 1.0 pp higher at yesterday's opening amid rising risk appetite and surged another 1.5 pp after the Fed's emergency rate cut. However, a shortage of sellers meant that volumes remained modest. Long-dated issues closed 2.6-2.7 pp higher and intermediate paper closed 1.5 pp higher.GOVERNMENT DEBTOFZ yields declined 10 bps in the belly yesterday morning amid rising expectations of central bank action to support markets. Local accounts were on the bid and there were no signs of sellers. Volatility intensified in the afternoon as there was no clear outcome to the call between G7 finance ministers and central bank governors. Following the Fed's emergency 50 bp rate cut, quotes rose on no volumes. By the close, yields were down 23-30 bps along the curve. Volumes were down from the levels of recent days at R45 bln.STORIES> Weaker ruble likely to have limited impact on inflation> Fed's emergency rate cut is an admission of recession risk> Tinkoff Bank January 2020 RAS: Loan growth picks up, strong profits> STLC places 7y dollar Eurobond> We add Russia 43 to our recommendations list> Kazakh inflation climbs to 6.0% y-o-y in February