Local sovereign bonds: Ministry of Finance to release auction details
On Monday, local sovereign bonds were under modest pressure and the yield curve moved 3-4bp wider, except for the long end that was little changed. RFLB 28 closed at 8.34%. Overall, the sovereign bond valuation normalised relative to XCCY swaps as the spreads are in the 60-80bp area. The best curve segment looks to be 5-6-year bonds, which offer good roll-down opportunities (as the policy rates remain supportive) and the widest premiums to XCCY. Today, the Ministry of Finance is to release the offering volumes and bonds for its auction.
Maxim Korovin, Anton Nikitin
VTB Capital analyst
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