Page 84 - RUSRptSept18

8.5 Fixed income
Issues by CIS countries were almost non-existant over the long summer holidays. September may see some new issues, but most issuers are waiting for a resolution of the US proposed “crushing” sanctions threat before committing to the market.
Non-resident holdings of Russian sovereign debt declined by $6.6bn in the second quarter . By contrast, non-residents bought $4.1bn of Russian sovereign debt in the first quarter, and $15.1bn in 2017.
8.5.1 Fixed income - bond news
Bonds of Russia's VEB slump on fresh sanctions fears. Dollar bonds of Russia de facto state-owned development banks Vnesheconombank
(VEB) plunged this week on fresh sanctions fears, pushing the yield on notes maturing in 2020 more than 600 basis points higher than the Russian
sovereign -- the widest spread since 2015. The bonds clawed back some gains on August 21 after three days of losses, reports Bloomberg. Analysts at VTB Capital in Moscow said the sudden sell-off suggests that select investors
84 RUSSIA Country Report September 2018 www.intellinews.com