Yesterday, the OFZ market bounced, cheered by the stronger RUB dynamics. The bonds opened 0.3pp stronger in price, moving deeper into the black by the close. Despite globally better risk sentiment, international bid remained moderate, with locals proving the major support to the market. The long end rose 1.2-1.5pp in price, with RFLB 28 (YTM 11.74%) recovering to 71.40, while the belly was up 0.6-1.0pp in price. Hence, the curve tightened 30bp, with the long end nudging to 11.8%, but the belly still remained above the CBR’s cost of funding, trading at 12.1%. Longer floaters picked up 0.5-0.7pp in price, rising to 101.0, while inflation-indexed RFLBI 23 added 0.6pp. Separately, the Ministry of Finance decided to cancel the OFZ auction, citing unfavourable market conditions.