For individuals: Internet bank
Select your city:

VTB Bank call center

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

Local sovereign debt: back in the red

On Thursday, the OFZ market saw yet another decent session, with the curve tightening near 20bp on the long end and about 30bp in the belly. Price-wise, RFBL 28 (YTM 10.60%) gained near 1.3pp, while RFLB 19 6.80 (YTM 10.9%) moved up to the same extent. Subsequently, the 5s10s OFZ spread moved up 10bp to -20bp. Regarding the impact on the market of the CBR's policy decision last week, we highlight that current OFZ trading levels assume medium-term inflation of near 8%, which is in line with the CBR’s projections. We still favor 5s10s steepeners on the OFZ curve. In addition, a gradual monetary easing cycle (instead of one bold action) gives more value to RUONIA-linked notes, that are undervalued against bullet peers, in our view.
Maxim Korovin, Tatiana Zueva
VTB Capital analysts

OFZ, ruble

Back to the list

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