Russian Eurobond prices decline a second day on U.S. rate hike speculation
MOSCOW. May 19 (Interfax) - Prices for the majority of Russian Eurobond issues extended their decline into a second day Thursday as investors priced in a potential U.S. rate hike at the Fed's June meeting. US Treasuries moved higher, resulting in a wider spread between the two benchmark issues.
Russia-30 was down 10 basis points from previous closing by 6:15 p.m. Moscow time at 122.03% yielding 2.45% p.a., up 2 basis points from the close on Wednesday.
Four-year US Treasuries were up 7 bps at 101.41%, yielding 1.27% p.a., down 1 bp. Spread in yield between Russia-30 and UST4 widened 3 bps to 118 bps.
Russia's 2043 bond fell 182 bps to 108.57% with yield at 5.28%, up 12 bps, the 2042 bond was down 180 bps to 104.65%, with yield up 12 bps to 5.29%; and 2023 was down 78 bps to 106% yielding 3.92%, up 11 bps.
