Primary auction announcement

Обзор облигаций 14.07.2015 Following the schedule, the MoF announced a local currency offering of 2-year bonds. The MoF has not sold local currency bonds since the end of February 2015 when it last sold an insignificant amount at 16.70%. The market is now above this level, with1-year bonds quoted at 21% and 4-year bonds above 23.50%. We do not expect a market bid below 20-21%. Any bids at rates below 20% most likely would be from state-owned banks or supported by domestic QE.