Daily Market Monitor: However it seems too early to say that Russian Eurobonds will stay firm at their current highs

The Rouble bond market remained sluggish on Monday on
minimal trading volumes. In the absence of new ideas,
investors seem content to absorb coupon interest. The
relatively stable environment – a strong rouble combined with
rich rouble liquidity – is allowing the market to wait for a
potential revival in activity. We see the situation as remaining
flat until the end of the week
Monday\'s Russian Eurobond market was livelier. Despite the
declining oil price, news on the potential restructuring or
early repayment of Russian external debt put a positive sheen
on Russian assets. On Monday it was the IMF that said it
would appreciate an early debt repayment. Russian debt to
the IMF has a weaker impact on the Russian Eurobond
market than other sovereign external debt segments
(particularly debt to the Paris Club). However, the fact that
early debt repayment is being discussed is decisive in itself. If
the Russian government could switch from general
discussions to practical actions (making a decision about
early debt repayment, regardless of the debt category) the
likelihood of positive developments for marketable debt would
increase. However it seems too early to say that Russian
Eurobonds will stay firm at their current highs. The
uncertainty in global markets could easily provoke a
correction.