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Eurobonds: growth continued in individual, the most attractive issues. Comments: TMK, Development Bank of Kazakhstan, OFZ

28/11/2012 | UFS IC
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Global markets and macroeconomic news
• Global markets showed no common dynamics yesterday. European stock markets closed slightly up on Greek negotiations’ results. US markets fell on budget cliff uncertainty.
• Stock markets will keep on falling, while debt markets will show no marked dynamics.

Bond market
• The sovereign sector posted quite strong dynamics. Russia-30 added 0.3% to finish at 127.1% of the nominal. EVRAZ and Severstal outperformed again, as well as VTB and Promsvyazbank.
• OFZ quotes mostly consolidated yesterday. The average price dynamics on the whole yield curve did not exceed 0.05%.
• Corporate bonds maintained mixed dynamics.

Money market
• Yesterday tension persisted in money market.

Comments
• TMK: predictably weak Q3 results. No response expected in Eurobonds, uninteresting issue.
• Today the finance ministry is offering 5-year 25080 in the volume of 15 billion rubles.
• Development Bank of Kazakhstan has sold 10-year Eurobonds worth $1 billion at the lower end of the yield guidance without premium to the market. The coupon rate was set at 4.125% per annum. The issue is not interesting in the secondary market.

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