Tension Eased Again in Europe. Eurobonds at New Maximums. Primary Market: LOCKO Bank, Orient Express Bank

On Monday most Russian Eurobonds continued strengthening since European debt crisis has somewhat eased. Sovereign issues added an average 0.5%, while most corporate issues increased 0.3%-0.5%.
OFZ market saw aggressive buying on the whole yield curve. Ruble corporate bond market was also growing.
Aggressive buying recommenced yesterday. Investors positively perceived the troika’s announcement that completed the first stage of Greek financial audit. Troika’s officials noted that Greece made some progress yet additional measures will be necessary. The mission is planning to return to Athens in early September.
Important news was also the statement of German government spokesperson that the ECB buying the sovereign Eurozone bonds is still acting within its mandate.
In the morning external background was still positive; Brent rose about 0.2%, European stock markets opened up as well. Russia-30 is traded unchanged so far. No significant news is expected today, yet we don’t rule out that growth will continue due to still high demand for bonds.

Trading Ideas in the Bond Market

Eurobonds:

Alfa-Bank-17
Evraz-17, Evraz-18
VTB perpetual Eurobond
NOMOS-BANK-19
Belarus-18

Buy & hold strategy:

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

Ruble bonds:

OTP Bank BO-3
Russian Standard Bank BO-2
Tatfondbank BO-1, BO-4, BO-5
Promsvyazbank Bo-2, BO-4
CBM BO-5
Renaissance Capital Bank BO-3

Buy & hold strategy:

VTB BO-5, BO-7
RSHB-10, BO-7
Rusnano-4
NCSP BO-2
LUKOIL BO-6, BO-7
Gazprom Neft-3, BO-5 and BO-6
Bashneft-3
CBM BO-4