08 June 2004 07:52
Eurobond prices dip Tuesday
MOSCOW. June 8 (Interfax) - Quotes for Russian Eurobonds dipped in light trading on Tuesday. Federal Reserve Chairman
Alan Greenspan's statement on limiting inflation made the situation worse toward the end of the day.
At an international conference in London, Greenspan said the Fed was ready to do all that was necessary to limit
inflationary pressure on the U.S. economy. U.S. T-bills and then Russian Eurobonds reacted to the statement with a drop
in prices. However, the slide was not too strong and the market quickly recovered its position.
Eurobonds maturing in 2030 fell to under 91% of face value, but were up to 91.125%-91.25% by close of trade.
The market opened with a slight rise in prices and later fell into a steady downward trend. When prices had dipped to
levels just below Monday's close, the market fell into a lull until U.S. investors joined the trading and
Greenspan's statement.
Prices went down amid a small volume of bond supply and without any support from buyers. A dealer with Alba-Alyans
bank says this could have been due to technical factors: yield spreads between U.S. T-bills and Russian bonds narrowed
unfairly on Monday so buying stopped.
U.S. producers prices for May are expected to come out Thursday rather than Friday, as previously announced, because
markets will be closed on Friday due to the burial of former U.S. president Ronald Reagan. Russian players have also
been recommended to take a break on Friday, so major changes are expected on Thursday.
As of 4:00 p.m., Moscow time, quotes were down 0.2% on average for most Eurobonds. Bonds maturing in 2005 slid
0.05%.
Quotes edged up 0.1%-0.2% on average for fifth, sixth and eighth tranche MinFin bonds and 0.3%-0.5% for seventh
tranche bonds. [RU EUROPE EEU EMRG ASIA FRX EUB GVD INSI] me
[Interfax] |
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