Local sovereign debt: good price action – little result
Yesterday, OFZ opened a little stronger, but later the initiative passed to profit takers. Hence, in the middle of the day longer dated bonds traded about 40bp lower vs. Wednesday. In particular, RFLB 28 touched 8.92% in yield (to recap, yield in the auction was 8.84%). However, as RUB attempted to firm, bonds regained the positions and returned to the levels seen in the morning. Overall, the OFZ curve nudged down 2-4bp yesterday. Meanwhile, Kostantin Vyshkovsky, Head of the Ministry of Finance’s Public Debt Office, was speaking yesterday in St Petersburg. Among other things, he mentioned that the share of non-residents is to increase from 22%, as it is at present. He also said that MinFin needed to sell RUB 10bn weekly of new debts in order to meet the plan, which is achievable, in his view.
Maxim Korovin, Anton Nikitin
VTB Capital analyst
Back to the list