Eurobonds fall on global rate hike fears
MOSCOW. June 30 (Interfax) - Most Russian Eurobond prices fell moderately in the past week amid concerns that the world's leading central banks will tighten monetary policy.
US Treasuries also fell, and sovereign spreads were little changed.
In the week as a whole, Russia's benchmark 2030 bond rose 0.02% to 120.03%. Spread between these and four-year UST narrowed 3 bps to 76 bps.
But the 2043 bond fell 1.18%; the 2042 bond was down 1.15% - spread between these and UST with the same maturity narrowed 5 bps to 268 bps; the 2026 bond fell 0.07% in price; the 2023 bond was down 0.15%, with spread narrowing 4 bps to 169 bps; 2020 fell 0.07% and 2018 fell 0.36%.
The new sovereign 2047 bond fell 0.78% to 100.78% in price, with yield rising 5 bps to 5.20%; and the new 2027 bond fell 0.1% to 99.87%, with yield up 1 bp to 4.27%.
The coming week is not expected to produce a clear trend on the Eurobond market due to mixed signals from the world markets, including oil, and in anticipation of a meeting between the Russian and U.S. presidents during the G20 meeting in Hamburg, the Interfax Center for Economic Analysis said.
Instability in the capital markets in expectations the U.S. Federal Reserve will continue to hike interest rates will also take the edge off any buying.