Daily Market Monitor: We expect the same market pattern to stay for the time being – benchmark dynamics will be the most important factor for Russian assets

The ruble bond market was livelier yesterday, with first
echelon prices increasing due to favorable ruble liquidity.
Second echelon prices stayed put at previous levels, though
there was some increase in demand for telecoms. We believe
the second echelon will catch up after first echelon growth
potential is exhausted, but that is not yet the case.

Meanwhile, Russian Eurobonds continued watching UST
movements. Sovereign spread contracted by 6bps to 287bps,
though the correction in benchmarks stopped Russian bonds’
upward movement. We expect the same market pattern to
stay for the time being – benchmark dynamics will be the
most important factor for Russian assets.