Kapital View - Fixed Income

Market Outlook
Eurobond Market
Russian Eurobonds seem to be reluctant to follow the recovery of US Treasuries. We see significant primary placements as major reason of such performance.

Ruble Bond Market
On Friday most ruble bonds showed declines sparked by a sharp rise in primary placements. We do not rule out further increases in yield in the coming days, although a price fall in unlikely given strong ruble liquidity and other factors that bode well for healthy demand.

FX Market
On Friday the ruble strengthened almost 9-kopeks against the dollar to a two-week high at Rb/$ 23.57. The two-currency basket was flattish at Rb 29.52.

Corporate News
• Sibirtelecom posted 2007 IAS financials .
• NPO Saturn is striving to increase its stake in UMPO to 51%.