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RUB Still In The Driver's Seat; Sell-Side Favours Unhedged OFZs

RUSSIA
  • local & USD rates mostly Unch as volumes continue to remain muted ($200m yesterday) and flows are mostly balanced.
  • 10Y yields currently trading below 5.80 after pushing lower in yesterday's session, paring late Nov selling pressure.
  • USD/RUB opens marginally higher, but manages to hold below 73.80 despite weakness in commodities (Brent -0.82% & Natgas -1.44%).
  • Sentiment remains bearish on USD/RUB to push towards 73.25 and below, with little head of political risks relating to UN threats over Crimea.
  • Price action rejected the underside of the 200dma after a higher open.
  • Sell side still sees more scope for USD/RUB core shorts to outperform and most still suggest unhedged exposure to Russian OFZs on a 1, 3 & 6-month horizon.
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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