23 Oct 2009 19:45

Russian Eurobonds correct up, spread narrows

MOSCOW. Oct 23 (Interfax) - Russian Eurobond quotations have started to correct up following two days of decline.

Russia's benchmark 2030 bond was up 30 basis points by 5:20 p.m. Moscow time to 111.47%, corresponding to yield of 5.63%.

Spread between these and ten-year US Treasuries narrowed 10 bp to 216 bp.

The market had declined for most of the week amid concerns the recent rally was unjustified, and that corporate earnings reports would not be good. But those concerns were unfounded, reports have been generally better than expected, especially for banks, and investor have rediscovered their appetite for risk, Renaissance Capital analyst Nikolai Podguzov told Interfax.