Economy and Debt Markets Navigator 02/07/2024

* The ruble weakened by 1.2% against the yuan yesterday to CNY/RUB 11.88, while perpetual USD/RUB futures declined 0.6% to 87.48. Yuan volumes contracted by 25.6% to RUB 171 bln. We expect the exchange rate to move further toward the CNY/RUB 12.0 mark in the coming days in anticipation of new drivers. * Negativity prevailed on the OFZ market yesterday, with yields growing by 4-10 bps along the curve. Investor activity continued to wane, with volumes totaling RUB 5.0 bln during the main session and RUB 1.1 bln in the mode of negotiated deals and negotiated deals with the central counterparty. Today, the market will focus on the announcement of Wednesday’s OFZ auctions. * Global markets also continued to see a negative trend, with the UST10's yield rising by 7 bps to 4.46%, while that on the UST2 was little changed at 4.76%. Despite better-than-expected German inflation data for June, the yield on 10Y Bunds rose by 11 bps to 2.60%, while that on UK Gilts grew 15 bps to 4.32%.