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Bear Flattener May Gain Traction as Hawkish Bets Increase

RUSSIA
  • Local & USD rates trade little changed to marginally firmer at the open, having continued to bear flatten in yesterday's session.
  • Local curve lifted +4-6bp in 2-5Y yields while the remainder of the curve lifted +2bp.
  • USD Bonds, by contrast, firmed -2.8bp in the belly and remained largely subdued across the rest of the curve. Risk premia continue to slide, as price action revisits 90.
  • Upside CPI surprise may deliver more momentum to bear flattening bias in locals as market price in a more substantial 50bp hike.
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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