15 June 2004 10:29
Russian Eurobonds gain in price Tuesday
MOSCOW. June 15 (Interfax) - Quotes for Russian Eurobonds gained on Tuesday as a result of the closing of short
positions after the publication of information on consumer price dynamics in the U.S. in May.
However, trading activity was noted only for the longest issue, maturing in 2030. With all other issues there were
either no deals, or once-off deals. Trading was generally low, market participants said.
Growth in consumer prices in May amounted to 0.6% instead of the forecast 0.5%, but this was within the expected
framework, Nikoil trader Andrei Dabizha said. Operators that had hoped for worse news started to close open positions,
which led to price growth.
By the end of the day, against a backdrop of a similar price dynamic for U.S. Treasuries, quotes for Russian
Eurobonds maturing in 2030 managed to practically return to the level from which they fell significantly in the absence
of Russian operators on Monday - June 14 was a holiday in Russia.
Nevertheless, market participants said that price growth is not likely to continue on Wednesday, as the situation on
the market has not changed with the publication of this information: the likelihood of the Federal Reserve raising
interest rates by more than 0.25 percentage points remains the same. In addition, the publication of the consumer
confidence index for June did not make market participants optimistic. The index increased for the first time in three
months, and significantly exceeded analysts' expectations.
Dabizha said that in the future the situation on the Russian forex debt market will still depend on the price dynamic
for U.S. Treasuries and will change depending on new information or announcements that will correct the current point of
view: "the rate will be increased, it may be increased more than people think," he said.
Until the publication of information on Tuesday, trading in dollar- denominated Eurobonds was very sluggish as
without any noticeable price movement.
At 4:00 p.m., Moscow time quotes were down significantly for dollar-denominated Russian Eurobonds compared with 13:00
on Friday. The market on Friday closed early in the U.S. and Russian operators did not work on Monday. Eurobond maturing
in 2028 and 2030 fell by over 1% and bonds maturing in 2018 - by 0.6%-0.8%. As usual, the exception was bonds maturing
in 2005, which changed insignificantly from the previous day.
Prices also fell in the OVVZ sector. The main drop was for the seventh tranche, which fell more than 1%, with other
tranches falling 0.5% on average. [RU EUROPE EEU EMRG ASIA FRX EUB GVD INSI] rd <>
[Interfax] |
RUSSIA IN FACTS
