Select your city:
Moscow

VTB Bank call center

+7 (800) 200-77-99
+7 (495) 739-77-99
For general information and enquiries

Local sovereign bonds: OFZs follow RUB dynamics

 
24.02.2014
On Friday, the local sovereign yield curve tightened 5-8bp in the long-end as RUB was no longer under pressure. RFLB Dec-19 closed at 8.0% and RFLB 28 closed at around 8.50%. Overall, the long-end of the sovereign curve looks too flat: in particular, the spread between 7y-14y notes is around 40bp, a record low level since the issuance of RFLB 28. In our view, this is justified by a lower participation ratio of non-resident investors in the long-end after the recent sell-off as well as expectations of a rather decent primary market supply in the belly of the curve, as current conditions do not allow the Ministry of Finance to tap long-term bonds. Nevertheless, in our view, the 5-7-year segment looks better than the long-end at the moment.
Maxim Korovin, Anton Nikitin
VTB Capital analyst

Tags:
OFZ, bonds

Back to the list



VTB group news subscribe
  • E-mail subscribe
  • RSS lent
    Subscribe
    Subscribe
Download the list of cities.....