Fixed Income Analysis /
Russia

Alfa Fixed Income Weekly: Last week the OFZ-market continued to contact

  • Last Tuesday, the RGBI index decreased to its lowest level since December 2018, while the OFZ curve continued to grow

  • Last Friday, the market was pressured because of fears of a possible default by state-owned Rosnano

  • On the primary bond market, activity also decreasing and issuers also cancelled their placements

Elizaveta Naumova
Elizaveta Naumova

Senior Fixed Income Analyst

Alfa
30 November 2021
Published by

Last Tuesday, the RGBI index decreased to its lowest level since December 2018, while the OFZ curve continued to grow, adding 9-10 bp throughout the length of the curve. Last Friday, the market was pressured because of fears of a possible default by state-owned Rosnano (ROSNANO-23 and ROSNANO-24 closed at 32% w/w and 28% w/w, respectively), geopolitical tensions and a capital market selloff triggered by the discovery of the Omicron strain of Covid. Due to the adverse market conditions, the MinFin decided to postpone its OFZ-auctions. Inflation for 16-22 November rose 0.2% versus +0.18% a week earlier, however inflationary expectations in November decreased from their highs by 0.1 pp to 13.5%.

On the primary bond market, activity also decreasing and issuers also cancelled their placements. Moscow developer «GC «Pioneer» and “Asphalt concrete factory №1” postponed their books until the first half of December.