09 June 2004 11:47
Eurobond prices edge down Wednesday
MOSCOW. June 9 (Interfax) - Quotes for Russian Eurobonds edged down Wednesday in thin trading, in reaction to a slide
for U.S. T-bills.
Eurobonds maturing in 2030 spent the day rising to just over or dipping just below 91% of face value.
The market lacked a clear trend because dealers are waiting for U.S. inflation figures, which might shin some light
on the future rate of growth for interest rates.
The market feels sure that interest rates will be raised at the next the Federal Open Market Committee meeting and
the focus has moved from labor market statistics to inflation data. The producers prices index is due to be released
Thursday.
Federal Reserve Chairman Alan Greenspan said Tuesday in London that the Fed is still backing a moderate rise in
interest rates, but if the rate of inflation is very high and tops 4%, interest rates will go up by more than the 0.25
percentage points the market expects. Greenspan's words did not surprise the market so the reaction was moderately
negative on Tuesday and caused little worry on Wednesday.
The market will remain calm Thursday before the release of the U.S. producers prices index for May. Later on, the
situation will depend on how different the figures are to forecasts.
The results of an auction offering $15 billion in five-year U.S. bonds, which will come out Wednesday nigh time in
Moscow, may have some impact on trading Thursday, Alfa Bank analysts said.
As of 4:00 p.m., Moscow time, quotes were down 0.1%-0.3% on average for most Eurobonds. Fluctuations for bonds
maturing in 2005 did not exceed 0.1%.
Quotes edged down 0.1%-0.15% on average for MinFin bonds. [RU EUROPE EEU EMRG ASIA FRX EUB GVD INSI] me
[Interfax] |
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