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Pimco ‘Mildly Positive’ on Russia Bonds, Likes Oil Exporters

RUSSIA
  • Pimco increased exposure to bonds of oil exporters such as Russia, Kazakhstan and Colombia due to support from Saudi Arabia for crude oil prices
  • Says Russia bonds discount a somewhat pessimistic view on both rate hikes and potential further sanctions
  • Expects policy tightening from Bank of Russia this year; "it seems unlikely that they will deliver tightening in excess of what has already been priced into the curve, which can provide some tailwind to bond prices"
  • Says reduced issuance due to better-than-expected government revenues is also supportive
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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