Eurozone government bond yields tightened further today, while the rally in US treasuries came to a halt. Yields on 10-year French and Italian bonds declined by 4 and 6 bps today to 0.97% and 2.18% after falls of 10bps and 12bps yesterday, respectively. 10-year Bund yields are down 1.5bps at 0.30%.10-year UST yields are up 2 bps at 2.36%. The dollar index is up 0.1% today. Most equity markets are up today with S&P 500 futures marginally higher. EuroStoxx 600 is up 0.2%, having pared losses late yesterday. Gold prices are marginally higher alongside the Bloomberg commodity index.
Oil prices are higher today, with Brent rising 1.2% today to $55.8/bbl. US crude inventories rose by 13.8 mn bbl against a 14.2 mn bbl API estimate.
Russia and CIS area developments and market colour
CBR Governor Nabiullina told local bankers that “moderately tight” monetary policy will continue and that scope for rapid disinflation is highest in the second half of this year. She said that Minfin’s FX operations should not be seen as interventions, have no nominal rouble targets and will be neutral from the standpoint of rouble liquidity. The governor observed that the banks’ shift to a liquidity surplus was “unstable”.
The rouble is 0.8% stronger today at 58.7 against the dollar. OFZ yields are 1-3 bps tighter today following yesterday’s mixed performance in the wake of weak 2022 bond auction (when only RUB 15bn of RUB 25bn were placed at 8.25%). Russia’s and Kazakhstan’s longer term sovereign bonds yields are flat. Ukraine sovereign yields are 1-2 bps wider.
Severstal will tomorrow begin investor meetings ahead of a planned 5-year USD Eurobond issue. The company in the past expressed interest in buying back part of its forthcoming Eurobond maturities.
Nordgold confirmed intention to delist from the London Stock Exchange. Nordgold’s free float is currently below 10%, versus the 25% LSE requirement. The company will keep paying dividends and publish financial results and may return to a public listing in case of large future projects.
For more information on the research, please click here.
Norvik Banka Research
+44 207 259 8854
+371 6701 1561
This report is prepared by Norvik Banka UK Limited, of 46-48 Grosvenor Gardens, London, SW1W 0EB, United Kingdom (hereinafter referred to as the Company) as a marketing communication for information purposes only. Neither the information nor any opinion contained in this report (notwithstanding the source) is intended to be, or should be construed as an offer, a recommendation, an advice or an invitation to make an offer, to buy or sell any financial instrument. Information contained in this report constitutes neither investment nor tax advice and it does not take into account the specific investment objectives, risk appetite and financial situation of anyone who may receive this report. Investors should seek their own advice regarding the appropriateness of investing in any financial instrument discussed in this report and carefully evaluate the risks and eventual losses that are related to the investment services and its compliance with their investment goals.
Investors should note that any income derived from investments in financial instruments may fluctuate and that the price or value of securities and investments may rise or fall. Accordingly, investors may lose their investment or receive back less than originally invested. Past performance and income is not a guide to future performance and income. Foreign currency exchange rates may adversely affect the value, price or income of any security or related investment mentioned in this report. Investing in the Russian or CIS economies and securities involves a high degree of risk and requires appropriate knowledge and experience.
The information contained in this report have been obtained from such public sources what are believed to be reliable, but no representation or warranty is made by the Company with regard to accuracy. Therefore the information contained herein is subject to change without prior notice.
This report should not be viewed as the only source of information, and neither the Company, nor the companies within the NORVIK group and/or any affiliates or employees thereof accept any responsibility or liability whatsoever for any direct or indirect damage arising out of or in any way connected with the use of information contained herein, nor for its authenticity.
This report may not be distributed, copied, reproduced or changed without prior written consent from the Company. Further information, which for the avoidance of doubt cannot be treated as the recommendations and/or advice either, may be obtained from the Company upon request.
This report has not been prepared on the basis of the requirements of regulatory provisions promoting independence of investment research and is not subject to the prohibition from making transactions before disseminating investment research.
Norvik Banka Research is a Trading Name of Norvik Banka UK Ltd, which is Authorised and Regulated by the Financial Conduct Authority, FRN: 681329. Registered in England and Wales with number 08940522. Registered Office: 46/48 Grosvenor Gardens 1st Floor, London, SW1W 0EB.
The information contained in this communication from the sender is confidential. It is intended solely for use by the recipient and others authorized to receive it. If you are not the recipient, you are hereby notified that any disclosure, copying, distribution or taking action in relation of the contents of this information is strictly prohibited and may be unlawful.
This email has been scanned for viruses and malware, and may have been automatically archived by Mimecast Ltd, an innovator in Software as a Service (SaaS) for business. Providing a safer and more useful place for your human generated data. Specializing in; Security, archiving and compliance. To find out more Click Here.