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Russian Bonds Eke Out Tentative Gains as Tensions Simmer

RUSSIA
  • Local & USD rates trade marginally firmer this morning amid signs of Lavrov-Blinken negotiations ahead with yields gingerly holding -1-3bp lower.
  • Renewed tensions over Donbas shelling and Russia’s hardline response document sent OFZ yields +8-13bp higher, while USD bond yields surged +24-30bp.
  • W/w the OFZ curve trades +2-31bp higher with a ear flattening bias holding.
  • The 5Y CDS spiked +32bp higher yesterday as shelling reports spooked traders, although it seemed only marginally more serious than the usual ceasefire breaches.

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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