OREANDA-NEWS. The OFZ curve opened stronger on Friday, but the price action reversed after the CBR's monetary policy meeting. We estimate that the OFZ curve priced in about a 200bp rate cut, so the 100bp decision spurred a wave of profit-taking. However, we highlight that trading flows were relatively subdued. Nevertheless, the curve moved up 20-25bp along all tenors, with the long end down near 0.8pp in price terms, while the belly declined around 0.5pp.

Maxim Korovin, Tatiana Zueva
VTB Capital analysts