As for benchmarks, we believe that there will be no major swings in US Treasuries before the presidential election on Nov.3

Trading was sluggish on the ruble fixed-income market on
Thursday. Despite the flood of liquidity, investors are
reluctant to buy into already expensive bonds. Instead, they
are seeking value by carefully selecting undervalued names,
while taking profits in those deemed overpriced. Indeed, with
many second-tiers yielding less than 10% to maturity, the
market starts looking ripe for a trend reversal. A correction
could ensue if money market rates rise to 4-5%, making
funding large positions expensive.

Russian Eurobonds were steady on Thursday, in line with
global emerging market trends. The Russia’30 spread
tightened to 285 from 291. We expect the Russian segment to
outperform other GEMs in the medium term on talks of early
repayment of Paris Club debt. As for benchmarks, we believe
that there will be no major swings in US Treasuries before the
presidential election on Nov.3.