Russian Eurobonds follow UST up on expectations of Fed rate cut
MOSCOW. Oct 3 (Interfax) - Prices for most Russian Eurobonds are up on Thursday on the back of US Treasuries as the likelihood of a rate cut by the Federal Reserve increases.
Sovereign spreads widened somewhat.
Russia's benchmark 2030 bonds were up 16 basis points from previous closing by 6:15 p.m. Moscow time at 114.19% with yield at 2.84% per annum, 5 bps lower. Three-year US Treasuries were up 17 bps from previous closing at 101.26%, with yield down 8 bps to 1.39%. Spread between Russia-30 and UST3 widened 3 bps to 145 bps.
Russia's 2043 bond was up 31 bps at 127.16%, yielding 4.09%, down 1 bp; the 2042 bond was up 62 bps at 125.12%, yielding 3.93%, down 4 bps; the 2026 bond was up 22 bps at 109.16% with yield down 3 bps to 3.21%; and the 2023 bond rose 9 bps in price to 109.42% yielding 2.36%, down 3 bps.
The 30-year bond maturing in 2047 was up 32 bps to 118.71% with yield down 2 bps at 4.11%; and the 10-year bond maturing in 2027 was up 14 bps at 106.24%, with yield down 2 bps at 3.33%.