Internal market:

We see a moderate reduction in trading activity on the background prevalence of adverse price movements in the ruble debt market. The reason, in our view, has compression ruble liquidity after the bulk of budgetary payment on the one hand and increased negativity in external markets (reduction in the stock and commodity trading floors), which weakens the position of ruble. However, we believe that at the end of the tax period in the debt market may also reduce the number of sellers. At mid-day trading on Tuesday with the largest turnover grew System-2 (1.35% of the price discovery), MDM-7 (0,35%), CFR-10 (0,09%), AHML-9 (-0, 03%), Promsvyazb-5 (0.03%), MosObl-8 (0.02%), RAB-9 (0.02%). Decreased quotes the following securities - Zenit-3 (-1.29%), South IDC-2 (-0.38%), Mechel-5 (-0.19%), Railways BO-1 (-0.19%) , RZD-8 (-0.17%), GazpromA4 (-0.13%), КБРенКап-1 (-0.09%), TGK1-2 (-0.08%), MosObl-5 (-0, 04%), VTB-5 (-0.03%).

level of liquidity is seriously diminished as a result of large tax payments. The amount of funds on deposits and correspondent accounts on Tuesday morning, fell to 130.9 billion rubles. and amounted to 828 billion rubles. Odds Mosprime as follows: O /N - 4,96%, 1M - 5,57%, 3M - 6,05%. NDF curve as comfortable for carry-trade: 1M - 5,42%, 3M - 5,61%, 1Y - 6,2%. As a result of the second half of the trading day the dollar rose 0.83% to 30.367 rubles., Euro, has risen in price on 0,12% to 42,696 rubles. Course currency basket in the ruble on Tuesday rose by 0.52% to 35.913 rubles.

Market US Treasuries and Eurobonds:

Tuesday, before the start of trading in the U.S., we again note the purchase of the curve US Treasuries, which continued to indicate a growing pessimism among investors: UST-2 - 0.785% per annum (-2b.p.), UST-10 -f553.592 % per annum (-4b.p.), UST-30 - 4.517% per annum (-3b.p.). In the segment of Russian Eurobonds seen sales inactive against small price correction of oil - Rus-30 decreased by 0.03% to 113.25% of par, the yield of the issue is 5.312% per annum (4b.p.). Spread between Rus-30 - UST-10 expanded to 2b.p. and is 172 bp

MICEX index compared with the value at closing of the previous trading day decreased by 1.998%
Reducing Russia"s stock market will soon end
Downward trends in the market may be continued in the near future
In 2009 inflation in Russia is 6 times higher than the growth in consumer prices in Europe
In 2010, FGC UES will begin construction of seven facilities in the Far East
NBU notes the failure of several banks" plans to increase capital in 2009
If tomorrow the statistics from the U.S. will be positive, Russia"s stock exchanges will continue to move upwards
As a result of trading the MICEX index lost 2.19%, ending the day at 1,384.79 points
Until the end of this week the market of Russia will consolidate in the region of 1 400 points mark for the MICEX