Russian Markets Dropped after the Headline that Navalny was Poisoned by Novichok

US stocks closed at record highs second day in a row; yesterday S&P gained 1.5%, Nasdaq appreciated by 1% supported by reports that US officials restarted talks over an extension of support for out-of-work Americans. The yield on 10Y USTs lost 2.1 bps and closed at 0.649%.

EUR currency lost 0.5% this morning after ECB officials raised concerns that EUR appreciation might affect the monetary stimulus; the ECB meeting will take place next week. France published the new EUR 100bn stimulus plan called “France Relaunch” which is supposed to help with long term problems of weak investment and job creation. The yield on 10Y DBR lost 5.3 bps on Wednesday and already lost 1 bps today.

Asian markets followed the US this morning, Topix is up 0.6%, Kospi gained 1.5%.

Russian Eurobonds as well as RUB ccy dropped yesterday after the headline that Navalny was poisoned with Novichok. Long end sovs lost around 1.5 points in price, RUB lost 2.3% vs USD (closed at 75.29). Ministry on Finance sold RUB 187.6 bn on weekly OFZ auction on Wednesday with bid-to-cover ratio of 1.7.

On SSA front we saw sovs traded firmer, Angol added 2 points in price supported by debt relief by Paris Club; NGERIA bonds added 0.5-1.5 points across the curve.