The OFZ market opened stronger yesterday, with prices up 0.3-0.4pp at the long end. However, later FX weakening, along with somewhat tough geopolitical rhetoric, spoiled the risk sentiment. At the end of the day, the bulk of bonds closed flat vs. Tuesday, except for the belly, which declined near 3-5bp yield wise. In particular, we noted RFLB 19 6.70 (YTM 15.10%) firmed 0.3pp in price terms. MinFin sold RUB 2.5bn of the debut RUONIA-linked bonds. Demand was RUB 4.8bn; the total offering was RUB 5.0bn. The average price was 95.96pp. We believe that there is little point in drawing too many conclusions regarding the market’s monetary policy expectations from this auction. Demand was okayish, but we understand some technical issues prevented broader investor participation, while many are still scratching their heads on fair valuations of the new instrument.