10 Jul 2019 19:49

Russian Eurobonds down despite higher oil, UST

MOSCOW. July 10 (Interfax) - Prices for most Russian Eurobond issues continue to fall on Wednesday, despite higher prices for oil and US Treasuries.

Russian bonds largely ignored remarks by U.S. Federal Reserve chief Jerome Powell, who said in Congress that recent better-than-expected jobs market data had not changed the regulator's plans. Powel did not give a clear answer when asked whether a half-percent rate cut was possible at the Fed's July meeting, although a quarter-percent rate cut has been priced into Russian bonds anyway.

Russia's benchmark 2030 bonds were down 11 basis points from previous closing by 6:15 p.m. Moscow time at 113.0% with yield at 3.08% per annum, up 3 bps. Three-year US Treasuries were up 17 bps at 100.48%, with yield at 1.79%. Spread between Russia-30 and UST3 widened 10 bps to 129 bps.

Russia's 2043 bond was down 11 bps at 122.01% yielding 4.38%, up 0.7 bps; the 2042 bond fell 6 bps to 118.03%, yielding 4.37%, up 0.5 bps; the 2026 bond fell 11 bps to 106.56% with yield at 3.66%, up 2 bps; and the 2023 bond fell 1 bp in price to 107.02% yielding 3.07%, up 0.5 bps.

The 30-year bond maturing in 2047 was up 6 bps to 111.48% with yield down 1 bp at 4.52%; and the 10-year bond maturing in 2027 was down 1 bp at 103.26%, with yield down 25 bps at 3.77%.