FX, bonds and rates weekly

July 1-5

* The ruble strengthened by 2.7% against the yuan last week to CNY/RUB 11.73, supported by exporters preparing to pay taxes. Support for the ruble may weaken this week due to a downturn in FX sales by exporters and the CBR. Under these conditions, the ruble may weaken to CNY/RUB 11.8-12.0 this week. * Global debt markets saw a negative trend, with yields on 10Y USTs, German Bunds and UK Gilts rising. * The OFZ market recouped some of its losses incurred in previous weeks, with yields falling by 30-40 bps. * The Minfin held its last auctions for 2Q24, placing a floater and a long fixed-coupon issue in a total volume of RUB 61.2 bln. The Minfin’s borrowing plan for 3Q24 was published on Friday. The placement volume is planned to increase to RUB 1.5 trln from RUB 1.0 trln in 2Q24. * Consumer inflation increased to 0.22% WoW over the June 18-24 period from 0.17% a week earlier.