Daily Market Monitor: On Monday, U.S. personal income statistics and new home sales should guide the benchmarks

The rouble bond market gave a mixed performance on Friday,
with exchange rate dynamics continuing to dominate. We see
potential rouble gains as supporting rouble bonds, but exchange rate
volatility and the uncertainty related to it acts in opposite direction. We
see rouble appreciation in the coming days outweighing the negative
factors.

The Russian Eurobond market demonstrated positive dynamics
on Friday on the back of insignificant benchmark price increases and
recent political events: the meeting of Russian President Vladimir Putin
and his U.S. counterpart George W. Bush could be considered
positive for Russia, as could the Houston court’s decision on the
YUKOS case. However we do not expect any more significant local
news in the coming days so the major factor influencing the Russian
Eurobond market should remain benchmark dynamics. And on
Monday, U.S. personal income statistics and new home sales should
guide the benchmarks.