VTB Capital is advising investors to buy Russia’s local OFZ bonds due in 2018 before Euroclear Bank SA is allowed access to the Russian market later this year.

The yield premium on the bonds over the ruble Eurobond due the same year has risen 69 basis points this year to 130 basis points. That spread may decline again “within the next few weeks” if the government announces when OFZs will become available through Euroclear, Nikolay Podguzov, VTB Capital’s head of fixed-income strategy, wrote in an e-mailed note to clients.

To contact the reporter on this story: Jack Jordan in Moscow at jjordan22@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net