Daily Market Monitor: The most important news was in the guidelines for government bond yields announced by Finance Minister Alexei Kudrin

The most important news was in the guidelines for
government bond yields announced by Finance Minister Alexei
Kudrin, who said government rouble bond yields would likely
increase following global interest rates. Given the current
market situation, where state-related institutions can
significantly influence sovereign rouble bond yields, there is
potential upward pressure on the yields in other rouble bond
market segments in the coming year.
Earlier, it was announced that the ministry plans to issue new
bonds with standard maturity terms (3, 5 10 and 15 years) of
Rub 40-42 each. New issues could come to the market as
soon as this month. Moreover, the GKO would be issued only
in case of unexpected budget financing gaps that are very
unlikely given the current healthy budget stance. For the
same reason, we believe other classes of government bonds
will serve more as monetary policy tools than budget financing
instruments.