Local sovereign bonds: longer end in demand
Last Friday, longer dated OFZs saw good bids, with RFLB 27 (YTM 8.23%) closing up near 20bp, price wise. At the same time, bonds on the belly of the curve saw some profit-taking, with RFLB 22 (YTM 8.03%) down near 15bp in price terms. Also, we noted some marginal pressure on the front end, but here prices had barely changed at the end of the day. Thus, the curve has slightly flattened with the 2s10s spread down to 121bp (-2bp).
Maxim Korovin, Anton Nikitin
VTB Capital analyst
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