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Daily Review

Foreign market

No important events took place at the foreign grounds yesterday. The voting on Brexit in the UK Parliament made the headlines (the exit scenario has been denied in the end). Yields of the core assets were mainly consolidating close to the current levels. The debt instruments of the EM segment were mixed on Wednesday. The Russian Eurobond were losing in price gradually, leading to a 1-3 bps growth in terms of yield.

Market situation. No important events took place at the foreign grounds yesterday. The voting on Brexit in the UK Parliament made the headlines (the exit scenario has been denied in the end). Yields of the core assets were mainly consolidating close to the current levels. The 10Y benchmark grew 1 bps for the day up to YTM 2.62% annually. In its turn, the positive economic stats in the US provided for growth of the principal exchange indices. Read more

 

Local market

Success of the Financial Ministry in course of the primary auctions, accompanied by the rising prices of hydrocarbons managed to grade the news on the US Congress having adopted several anti-Russia bills. The sovereign curve closed 1-2 bps lower, while the authority managed to attract an all-time high volume of RUB 91.4 bn.

Market situation. Success of the Financial Ministry in course of the primary auctions, accompanied by the rising prices of hydrocarbons managed to grade the news on the US Congress having adopted several anti-Russia bills. The sovereign curve closed 1-2 bps lower, while the authority managed to attract an all-time high volume of RUB 91.4 bn, seriously overweighting the previous maximum that has been reached in late February (RUB 57.6 bn). In particular, at the first auction, the short-term 26209 series was sold for RUB 34.7 bn at the back of the demand at RUV 61.5 bn. The weighted average yield (8.0% annually) provided for minimal premium vs the levels of the recent deals. Later, the long-term issue 26224 face even greater interest as the orders’ volume exceeded RUB 83.5 bn, allowing to sell RUB 56.7 bn worth of notes under a weighted average yield of 8.47% annually (meaning at the level of yesterday close and with a small premium vs the secondary markets). Success of the second auction turned out to be important in the light of it showing confident demand at the far end of the curve, particularly on behalf of non-residents. Read more

The volume of operations at MICEX grew up a bit more, yet it still did not even reach the median level. Total turnover was a bit higher than RUB 15 bn, more than one third of which was made by the deals with the floaters (at the expense of the increased volumes in the 29012 series). Liquidity focused in the long-term section within the classic OFZ segment.

Forecast. Despite the oil prices – the important support factor for the ruble assets – still provides for an upside dynamics, the OFZ market was into correction this morning.

 

 

Author: Julianna Lukyanova

 
 
 
 
 

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