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OFZ Yields Soar +200bp as Trading Reopens; CBR Actively Buying to Maintain Stability

RUSSIA

FX/FI MARKETS (FX & OFZs Open, Stocks Closed)

  • FX & OFZ markets will remain open today, similar to yesterday, while stocks remains closed. OFZs sold-off in their first session in three weeks, although the CBR was active in buying to maintain stability, as per Nabiullina’s promises at last week’s CBR meeting.
  • Yields rose over +200bp across the curve as dysfunctional trading Russian assets remains entrenched.
  • USD/RUB BGN rose +2.35% yesterday, holding a +12.24% range between 103-115.5 – which is slightly narrower than the ranges seen last week.
  • Oil prices continue to rise this week with Brent now approaching $120/bbl and exerting inflationary pressures across global markets.
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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