17 June 2004 08:22
Russian Eurobond market continues to climb
MOSCOW. June 17 (Interfax) - Quotes for Russian Eurobonds rose considerably after President Vladimir Putin said the
government did not want Yukos to go bankrupt.
Eurobonds maturing in 2030 went up 0.4%-0.5% to 91.6%-91.75% after the statement.
There was a generally neutral reaction on the U.S. T-bills market to the key economic indicators released 10 minutes
after the Russian president's statement.
Trading was quiet before the president's words and prices fluctuated within a narrow range around levels seen at
Wednesday's close. The market opened positively due to rumors about a possible rating upgrade for Russia from
Fitch, said Alexander Kudrin of Troika Dialog. Fitch representatives arrived in Moscow on Wednesday.
"Many investors believe Russian cannot receive an investment grade rating from another rating agency because of
the Yukos problem. An now, when they consider that the problem will be resolved, the way opens for an investment grade
rating," he said.
The president's statement, which theoretically means the authorities are less aggressive towards Yukos and are
ready to resolve the conflict through talks, adds confidence and liquidity to the market, said Alexander Nikonov of MDM
Bank. "People will be ready to take on more risks," he added.
Analysts say the Federal Reserve meeting at the end of the month will contain further gains for Russian
Eurobonds.
As of 5:30 p.m., Moscow time, quotes, compared with 4:00 p.m. on Wednesday, were up over 0.5% on average for
Eurobonds maturing in 2028 and 2030. The other bonds rose by an average of 0.3%.
Quotes rose by up to 0.3% for MinFin bonds. [RU EUROPE EEU EMRG ASIA FRX EUB GVD INSI] me
[Interfax] |
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