In bulk, OFZs closed
Today, the Ministry of Finance is offering RFLB 23 for RUB 12.56bn. The yield guidance was announced at 7.70–7.75%, while the bond closed yesterday at 7.75%. Therefore, the auction carries no premium to the secondary market, meaning that there is little chance of success in the current environment. Nevertheless, technically the bond looks undervalued to the rest of the curve, in our view.