Daily review of the debt markets. Eurobonds: Growth Renewed. Primary Market: Sberbank Placed Additional Volumes of its Eurobond

Yesterday currency debt market recommenced growing. Sovereign and corporate Eurobonds added 0.2-0.3% on average.
External background was negative this morning; correction movement was observed in most stock and commodity markets. Thus, Brent sank 0.6% in the morning. Russia-30 has been traded unchanged so far. Today we expect profit taking in most instruments, therefore a moderate decline in Russian Eurobonds quotes is highly likely.

Yesterday Sberbank placed additional volumes of the Eurobond maturing in 2022. The issue was placed at the price of 108.0% of the nominal offering a yield of 5.06% per annum. It offered a premium of 5-10 b. p. to the secondary market, so entering the issues was interesting for investors. After entering the secondary market the issue has been traded at 108.5% of the nominal, while the yield dropped to 4.99% of the nominal. Thus, the upside has practically exhausted.

Trading Ideas in the Bond Market
Eurobonds:

Ukraine-17
Alfa-Bank-17
Evraz-17 and Evraz-18 (the spread to Severstal’s yield curve might narrow)
NOMOS-BANK-19

Strategy Buy & hold:

Russian Standard-17
Ukraine-13
Promsvyazbank-14, Promsvyazbank-15
TCS Bank-14
HCFB-14
Bank of Moscow-15
Renaissance Capital-13
KKB-13, KKB-14