OFZ: In stand-by mode

RUSSIA ECONOMICS - Report 14 Sep 2021 by Evgeny Gavrilenkov and Alexander Kudrin

The CBR’s hawkish message is likely to put a pause on the inflow of international investors’ funds into the OFZ market. The yields in the long end of the curve remain attractive in real terms, especially in anticipation of a potential cut of the inflation target by the regulator, but the moment to play the disinflation game has not yet arrived. From the supply/demand point of view, the situation is favorable, as the Finance Ministry will remain almost flat in terms of net borrowing until the year end and, on top of that, may cut the issuance program next year. Y-o-y inflation will start coming down in October, which, accompanied by a potential change in the CBR's rhetoric, may fuel a rally in OFZs.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.