Economy and Debt Markets Navigator 28/06/2024

* The ruble continued to strengthen against the yuan yesterday, reaching CNY/RUB 11.53. Perpetual USD/RUB futures ended the day at 85.68 (-1.4%). Trading volumes in the yuan jumped by 69% to RUB 270 bln. Amid the exhaustion of support from FX sales by exporters due to the end of the tax period, the ruble exchange rate might correct from current levels and approach CNY/RUB 12. That said, we do not exclude ongoing high volatility amid the search for a balance between buyers and sellers. * Negative sentiment prevailed on the OFZ market on Thursday amid data showing acceleration of inflation. While yields jumped by 25-40 bps at the open, the curve recovered some of its losses and ended the day up a more modest 5-15 bps. Activity among market participants remains above average: turnover during the main session increased to RUB 16.7 bln, with the OFZ 29016 floater accounting for a 52% share. Volumes in the mode of negotiated deals and negotiated deals with the central counterparty totaled RUB 2.0 bln. Yields on linkers also increased yesterday, gaining 2-20 bps.