19 April 2004 06:20
Russian forex bonds correct up
MOSCOW. April 19 (Interfax) - Quotes for Russian forex bonds continued to correct up in average trading Monday. The
correction began on Friday, following fast decline throughout the week, dealers said. Demand on Monday was attributed to
investors closing short positions that had not been closed on Friday. There was no aggressive selling. "We arrived
at the important 96% of face value for the most liquid Eurobonds, maturing in 2030, and even slid just below that, and
at this level people closed short positions. Now the market is deciding what to do next and is getting a feel for a
support level," said Alexander Semeinikov of Credittrust. There will not be such a high volume of statistics
released this week, but the market will be waiting for Federal Reserve Chairman Alan Greenspan's statements to
Congress on April 20 and 21, he said. Greenspan's words on interest rates are expected to have a positive impact on
debt markets and investors expect him to say that the Fed requires more evidence to raise the rates, meaning several
more months of strong figures, such as those seen in March. "The market has began to react to positive [news].
Previously it may not have noticed positive events because everybody was scared into selling their positions, but now
some cash is returning and is linked to some good news but really it is a correction, at least for now," a
Metallinvestbank dealers said. Eurobonds maturing in 2030 opened at 96.5% and then climbed to a high of 96.9375%. Later
prices stabilized at 96.6875%-96.8125%. Greenspan's first statement will be made on Tuesday at 10:30 p.m., Moscow
time, so few changes are expected on the Russian market Tuesday. Dealers expect thin trading. At 4:00 p.m., Moscow time,
quotes were up 0.5% on average for dollar- denominated Russian Eurobonds maturing in 2010, 2028 and 2030, 0.6%-0.7% for
2007 and 2018 bonds, and 0.02%-0.03% for 2005 bonds. Quotes went up 0.2%-0.3% on average for most MinFin bonds, with the
exception of seventh tranche bonds, which climbed 0.7%-0.9%. At 5:30 p.m., indicative quotes were at 90.79%/91.2% for
MinFin-5, 97.89%/98.59% for MinFin-6, 80.67%/81.44% for MinFin-7 and 94.36%/95.26% for MinFin-8. [RU EUROPE EEU EMRG
ASIA FRX EUB GVD INSI] me
[Interfax] |
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