3 Nov 2017 19:26

Russian Eurobonds rise slightly on oil, USTs in week

MOSCOW. Nov 3 (Interfax) - Prices for most Russian Eurobonds rose moderately in the past week on the back of higher oil prices and rising U.S. Treasuries.

The Russia 2030 bond was unchanged in the week at 117.82%. Spread between these and four-year USTs narrowed 4 basis points to 98 bps.

The 2043 bond grew 0.44%. The 2042 bond rose 0.49% - spread between these and UST with the same maturity narrowed 2 bps to 249 bps; the 2026 bond rose 0.12% in price; the 2023 bond was up 0.1%, with spread narrowing 3 bps to 118 bps; and 2020 rose 0.06%. The new 2047 bond rose 0.51% to 102.48% with yield down 3 basis points to 5.09% per annum, while the 2027 bond rose 0.12% to 101.95% with yield down 2 basis points to 4%.

There will most likely not be clear signals on the Russian debt market in the week to come amid varied signals on international debt markets, including oil prices, the Interfax Center for Economic Analysis said. The situation on international capital markets could worsen in the short-term in the run up to a rate hike by the U.S. Federal Reserve. At the same time, selling activity on Russian capital markets will be limited amid high oil prices and a stable situation on the internal forex market.