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Fixed Income Market Daily: Today Russian Eurobonds are likely to post modest gains in response to yesterday’s weakness in U.S. Treasuries

22/06/2004 | Alfa-Bank
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Market Comment:

Today Russian Eurobonds are likely to post modest gains in response to
yesterday’s weakness in U.S. Treasuries. (Both auctions were a success.)
However, activity remains low.

VAT payments did not result in an acute liquidity deficit (overnight rates varied on
average between 2% and 5% p.a.). A greater amount of mutual lending
transactions among banks and the forthcoming closing of the reverse repo deal
totaling R36.8 bln gave positive momentum to the ruble bond market.

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