Overall bullish on
OFZ and local bond market on monetary policy and inflation grounds
The oldest faunal zone (
OFZ I, 330-293 cm, 11 200-9300 cal yr BP) in the silty clay layer contains Limnocytherina sanctipatricii (Brady & Robertson) (Fig.
OFZ, the Slovak producer of ferroalloys, has acquired the Vatra Dornei mine in northeastern Romania.
The same tactical logic (further slide in yields is preconditioned on MTRO results and REPO rate cuts) relates to
OFZ with the usual caveat that rate cuts should be a more potent trigger (at least in the short term).
As part of the proposal, which includes several options, the government would issue
OFZ treasury bills, a type of bond, to boost the balance sheets of the biggest banks.
about $40mio per day) does not sound like a big threat for RUB in my view and, moreover, the amount is likely to be downsized as planned privatization revenue still looks somewhat optimistic (transfer to the reserve fund is a balancing item, hence, it is reduced when there is a shortfall in privatization revenue or
OFZ supply).
There are no major developments in fixed income space:
OFZ are better bid at the belly, long end is flat and rates continue to stabilize at lower levels.
As for local markets, RUB continued to outperform EM FX to some degree, rates (XCCY/IRS) consolidated at lower levels in anticipation of the first MTRO auction/rate cuts, while
OFZ curve firmed in flattening bias despite soft demand at the primary auction.
The interest in ruble assets will be tested at today's auction for
OFZ 26210.