Select your city:
Moscow

VTB Bank call center

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

Money market: squeezed by taxes

 
28.04.2015

Yesterday’s session was rather tense for the money market, as the bid for liquidity strengthened on the back of decent MET and VAT payments. To smooth out the peak of the tax period, the CBR conducted a fine-tuning repo auction, providing RUB 102bn at an average rate of 14.20%. In addition, banks borrowed RUB 154bn from the CBR in the FX swap window and RUB 10bn in standing repo facilities. The overnight FX swap remained flat at 14.90%, while the weighted-average rate inched up to 14.91 (+46bp).

Short NDF rates gained 60-120bp, with the one-month tenor closing at 15.00% and the three-month rate increasing to 14.10%. Market participants take profits on short positions for the second day in a row ahead of CBR’s policy meeting this week. In our view, the front end looks interesting to receive here, even onshore. The rest of the NDF/XCCY curve adjusted 10-20bp lower, while IRS rates remained broadly intact.

Maxim Korovin, Tatiana Zueva
VTB Capital analysts

Tags:
money market

Back to the list



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