Local sovereign debt: 2015 debut auction
Yesterday, MinFin announced the re-opening of the RFLB 16 6.0 bond issuance programme for RUB 100bn in total. Today, the ministry is to offer RUB 5.0bn of that issue at auction. Overall, the OFZ market opened on a softer footing yesterday; however after the announcement, prices declined 30-40bp on the belly and front end, before recovering later. At the end of the day, long OFZ bonds lost 2.0pp in price, while the belly declined 0.7-0.9pp. The curve therefore moved up 35-45bp along all tenors.
Maxim Korovin, Tatiana Zueva
VTB Capital analyst
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