Daily Market Monitor: The Russian Eurobond market continues to follow benchmarks

The Rouble bond market has shown positive sentiment on rising
trade on the Moscow Region bonds. The market’s upbeat trend is
likely to survive till the end of the week, thus creating interesting
opportunities for upcoming placements. Thursday’s main event on the
local market is the placement by auction of RUB 10 bln OBR-2, which
is to be bought back by the Central Bank on September 15, 2005.
The Russian Eurobond market continues to follow benchmarks.
Data releases on U.S. GDP and personal consumption for 1Q2005,
scheduled for Thursday, should make clear U.S. Federal Reserve
intentions regarding interest rates hikes, thus setting trends for nearterm
dynamics on the Eurobond market. The importance the mentioned
releases is supported by the fact that recent data has failed to show
any clear trend, bringing confusion to the market. On Wednesday, the
most-liquid Russia’30 and benchmarks lost 3 bps in their yields with
the Russian sovereign spread remaining at 190 bps.