07 June 2004 09:58
Russian Eurobonds climb Monday
MOSCOW. June 7 (Interfax) - Quotes for Russian Eurobonds picked up Monday thanks to increased demand for emerging
markets' bonds. Growth rates were, however, more modest than for Turkish and Brazilian bonds, for example, dealers
said.
Trading was average and most transactions were concentrated in the 2030 Eurobonds sector with a roughly even number
of Russian and foreign investors buying.
After the release of U.S. labor market figures on Friday, investors seem to have decided that the Federal Reserve
will increase interest rates by 0.25 percentage points at its next meeting, said Denis Muzychkin of Obibank. "It
was concluded that this is already reflected in prices and that bond yield is appealing so [investors] began to buy
Eurobonds on all emerging markets," he said.
"Some investment funds that pulled out of bonds in April-May entered the market again," a dealer with
Nikoil said. He was unable to predict whether the gains would continue on Tuesday. Emerging markets' Eurobonds are
likely to return to a closer correlation with U.S. T-bills, which do not have any reason to climb right now.
As of 4:00 p.m., Moscow time, quotes were up 0.5%-0.9% on average
for Eurobonds maturing in 2018, 2028 and 2030, and 0.2%-0.4% for
U.S. T-bills continued to slide in the Asian trading session on Monday, but this had little impact on emerging
markets' Eurobonds.
Investors will continue to watch out for U.S. economic statistics, especially upcoming inflation figures at the end
of this - beginning of next week. Now investors are concerned not about the Federal Reserve raising interest rates but
about how much rates will go up by.
Data on consumer loans in April, to be released on Monday at 11:00 p.m., Moscow time, is unlikely to have a large
impact on U.S. T-bills.
Eurobonds maturing in 2007 and 2010. Bonds maturing in 2005 edged up 0.05%.
Quotes went up 0.7%-0.9% for seventh tranche MinFin bonds, 0.4%-0.5% for fifth tranche bonds, and up to 0.1% for
sixth and eighth tranche bonds. [RU EUROPE EEU EMRG ASIA FRX EUB GVD INSI] me
[Interfax] |
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