Daily review of the debt markets. Market Positive after Greek Elections Might Be Short-Term. Event of the Week: FRS Meeting. No QE Expected from the Regulator

On Friday the Russian Eurobond market showed mainly positive dynamics against the backdrop of growth in most markets of risky assets. The average growth in sovereign bonds totaled about 0.15%. Corporate issues added an average 0.2-0.3%.
Ruble corporate debt market was trading flat on Friday. Trading activity was above average.
On Monday morning global markets saw a moderately positive background. European indices opened with a strong growth, Brent added about 0.5% and was traded at 98.0$ per barrel. Russia-30 has been traded unchanged so far. On the whole we expect growth of corporate Eurobonds. However, the markets anticipate another important event this month – the FRS meeting, which is due on Wednesday. We recommend staying out of the market before the results have been known.
The yield on Spanish 10-year bonds has reached 7.1% by now.
We expect deterioration should the FRS not resolve on new QE. Such a result is the most likely one at the moment.


Trading Ideas in the Bond Market

Eurobonds:
We recommend staying out of the market.

Ruble Bonds:
Strategy Buy & hold:

RSHB-10, ВО-5
Gazprom-13
VTB ВО-5, ВО-7
LUKOIL BO-1, BO-2
Bashneft-3
Gazprom Neft-3, BO-5 and BO-6