Fixed Income Market Weekly: The absence of factors that could cause a notable rise in government bond prices will maintain limited demand for OFZs

GKO-OFZ market
The absence of factors that could cause a notable rise in government
bond prices will maintain limited demand for OFZs. Moreover, the rubledenominated
government bond market has practically ceased to respond
to positive factors even as sensitivity to negative news has grown.

Eurobond market
The abundance of important international events, i.e. publication of the
Fed’s “Beige Book” and Fed Chairman Alan Greenspan’s statement, has
the ability to raise volatility on the external debt market. In the absence of
news concerning Russia’s deal with the Paris Club, spreads on Russian
eurobonds against US Treasuries will not undergo any noticeable
changes.