Daily review of the debt markets. Positive US statistics supports risk appetite. Primary market: VTB, Bank Saint Petersburg, Sberbank, Gazprombank

Positive US statements bolstered buyers’ optimism
Moderate market growth will continue today

Eurobond market posted no pronounced dynamics with changes in most bonds not exceeding 0.1%. Just several long-dated bonds rose in price on external positive.
Yesterday growth continued in most OFZ. Trading activity remained at the level of the previous trading day.
Corporate bond market is still demonstrating mixed dynamics: single transactions were registered in the market.

We expect the rates to stay unchanged till the end of the current week. The next tax – VAT – is to be paid on October 22, yet banks will start to reserve funds as early as this week.

Increased activity still prevails in the primary market.
Today two state banks – Gazprombank and Sberbank – are starting meetings with investors that may be followed by new borrowings from external markets.
VTB will place yuan-nominated bonds for 3 years at 4.5% per annum.
Bank Saint Petersburg is going to sell subordinated Eurobonds, the offer is little attractive.

Trading Ideas in the Bond Market

Eurobonds:

Promsvyazbank-17
Russian Standard-18
VTB-17, VTB-18
Evraz-17, Evraz-18
Metalloinvest-16

Buy & hold strategy:

Ukraine-13
Promsvyazbank-14, Promsvyazbank-15
TCS Bank-14
CBM-14
Kazkommertsbank-13, 14

Ruble bonds:

Gazprom Neft-4
NK Alliance BO-1
Russian Post-01
Zapsibkombank BO-2
SME Bank-2
CBM BO-5
Renaissance Capital Bank BO-2
Renaissance Capital Bank BO-3
Orient Express BO-2
Orient Express BO-4

Buy & hold strategy:

Gazprom Neft BO-5
CBM BO-4