Liquidity visibly tightened in the aftermath of the VAT and MET payments. According to the CBR’s data, the budget absorbed near RUB 480bn on Tuesday, which pushed banks’ correspondent accounts down to RUB 985bn yesterday morning. However, the settlement of regulatory auctions helped to decrease the bid for liquidity. The overnight FX swap returned inside the CBR’s policy rates band, closing at 11.16%; the weighted average rate printed 11.11% (-17bp). Banks unwound the FX swap with the CBR, reducing the volume of the fixed-rate repo to RUB 23bn. Meanwhile, some pressure on NDF/XCCY still remained: long NDF rates picked up 7-15bp, with the 12M NDF rate closing at 13.28%, while the belly of the XCCY curve shifted up 7-12bp, with three-year tenors rising to 11.51%. IRS rates widened 15-20bp, so the one-year tenor ended the session at 13.00%.