Russian Eurobonds edge down on lower appetite for risk
MOSCOW. June 17 (Interfax) - Most Russian Eurobond issues edged down in price in the past week as appetite for risk declined over fears that Britain would vote to leave the EU at the June 23 referendum.
US Treasuries gained in price and sovereign spreads widened.
Bond prices fell most in the first two days of the week when oil prices slid and uncertainty over the likely outcome of the Brexit vote increased.
The selling eased on Wednesday, when Wall Street posted gains ahead of the results of the Federal Reserve's June meeting and oil prices grew, however the Fed's gloomy forecasts for the U.S. economy held bond prices in check on Thursday. The Russian bond market traded sideways on Friday, as concerns about a Britain leaving the EU eased, although the general uncertainty has not gone away entirely.
Russia's benchmark 2030 bond fell 0.33% in price to 122.13% in the week as a whole. Spread between these and five-year UST widened 15 basis points to 135 bps.
The 2043 bond fell 1.13% in the week. The 2042 bond was down 1.3% - spread between these and UST with the same maturity widened 14 bps to 332 bps, the 2023 bond fell 0.55%, with spread widening 15 bps to 250 bps, 2020 fell 0.2% and 2018 fell 0.07%.
The Eurobond market will likely trade sideways in the week to come, as it and markets around the world await the results of the referendum on Britain's membership of the European Union, the Interfax Center for Economic Analysis said.