For most of the session, the OFZ market was trading flat, in line with RUB dynamics. In the afternoon, long-dated bonds found some bids, rising 0.2pp. However, the evening USDRUB spike above 66.00 triggered some selling, pushing the curve down 0.2-0.3pp in price. Hence, the curve flattened, with the front end approaching 11.0% (+10-15bp) and longer tenors widening 4-6bp. Yesterday’s auctions garnered solid demand, as the last time the Ministry of Finance offered bullet OFZ was at the end of July and recently placed rather modest volumes in floaters. However, as usual, MinFin was not disposed to offer any significant premiums to the secondary market, allocating only RUB 1bn in floater RFLB 20 at an average price of 101.51. Bullet RFLB 19 6.70 was placed in full, with the weighted average yield printing 11.19%.