Russian Eurobonds return to previous levels by end of week after fall at start of month
MOSCOW. Feb 5 (Interfax) - The prices of the majority of Russian Eurobond issues after a notable fall at the start of the month by the end of week practically returned to their levels at the end of January thanks the stabilization of the situation on global capital markets.
US Treasuries also slightly grew in price, and sovereign spreads for most issues widened somewhat, with the exception of 2030 Eurobonds.
The start of the week was not very favorable for the forex bond market of Russia, after active growth at the end of January, prices fell amid the notable deterioration of the situation on global markets. On Tuesday the fall of global capital markets continued, while US Treasuries, which act as secure assets during periods of instability, rose in price. Long Russian Eurobond issues fell in price. In the middle of the week, global markets, including oil markets, returned to growth. On Thursday positive sentiment on the market of domestic Eurobonds continued, and prices of the majority of issues fully won back losses at the start of the week. On Friday, the activity of buyers of Russian Eurobonds fell amid a notable deterioration of the situation on global market, however there was no notable downward movement. Fluctuations of prices mainly moved sideways, lightly lower than levels at closing on February 4.
Russia's benchmark 2030 bond rose 0.34% in price to 120.51% in the week as a whole. Spread between these and five-year UST narrowed 3 basis points to 161 bps.
The 2023 bond grew 0.22%, with spread widening 1 bp to 302, 2020 rose 0.08% and 2018 grew 0.35%. The 2043 bond was down 0.15%; the 2042 bond fell 0.08%, spread between these and UST with the same maturity widened 8 bps to 392 bps.
Prices for Russian forex state bonds next week may continue growth amid the forecast further stabilization of the situation on global capital markets, including oil markets, Interfax Center for Economic Analysis said.
Analysts said that the formation of positive trends in the forex bond sector will also be facilitated by such factors as the stabilization of the situation on global capital markets, and also the jump in the framework of a correction of oil prices, which will positively impact the Russian ruble.