4 May 2018 19:32

Russian Eurobonds fall markedly in week on Fed meeting results

MOSCOW. May 4 (Interfax) - Prices for most Russian Eurobonds fell markedly in the past week on the back of the outcome of the U.S. Federal Reserve's meeting and lower oil prices.

US Treasuries rose in price, and sovereign spreads widened.

In the week as a whole the benchmark Russia-30 bond fell 0.52% in price to 111.13%. Spread between these and four-year US Treasuries widened 11 basis points to 162 bps.

The 2043 bond fell 3% in price, with yield rising 23 bps to 5.49%; the 2042 bond was up 2.93% - spread between these and UST with the same maturity widened 19 bps to 249 bps; the 2020 bond fell 0.34%; the 2026 bond fell 1.4%; and 2023 fell 0.8%, with spread widening 16 bps to 151 bps.

The Eurobond maturing in 2047 fell 3.8% to 93.59%, with yield rising 26 bps to 5.7%; and the 2027 bond was down 1.6% to 96.27%, with yield up 21 bps to 4.76%.

The decline for Russian Eurobond prices is likely to slow in the coming week with the world capital markets expected to stabilize, the Interfax Center for Economic Analysis said. High oil prices will also support Russian bonds.