Russian Eurobonds due 2020 are beating five-year debt by the most since they were sold in April as a rebound in oil improves the outlook for economic growth and boosts demand for longer-term notes.
The 10-year bonds rose 1.8 percent last week to 102.60 cents on the dollar, reducing the yield to 4.66 percent, the lowest since they were issued four months ago, data compiled by Bloomberg show. The securities due 2015 gained 0.5 percent to 100.05 cents, sending the yield to 3.61 percent. Russia’s April sale was the first on overseas markets since its 1998 default.
A 19 percent rally in oil, Russia’s biggest export earner, from its 2010 low in May is helping accelerate Russia’s expansion and shrink the budget deficit. Gross domestic product grew an annual 5.4 percent in the second quarter, the government said July 27, up from 2.9 percent in the first three months. Prime Minister Vladimir Putin said last month the budget gap may shrink to 3.6 percent of GDP next year, Interfax reported, from 5.9 percent in 2009.
http://newspolitan.com/world/2010/08/08/bloomberg-Russia-Recovery-Sends-2020-Eurobonds-Bonds-to-Best-Rally-Since-April-Sale
