Economy and Debt Markets Navigator 04/07/2024

* The ruble weakened by 0.8% to CNY/RUB 11.9 yesterday, while USD/RUB perpetual futures closed at 88.65 (+1.1%). Yuan trading volumes contracted by 26.2% to RUB 97 bln. Support for the ruble is gradually fading following yesterday's announcement of a reduction in net FX sales by the CBR under the budget rule from RUB 4.7 bln to RUB 3.0 bln per day. Under these conditions, the ruble may continue to move toward the CNY/RUB 12.0 mark. * Mild positivity prevailed on the OFZ market yesterday, with yields falling by up to 5 bps, while the results of the Minfin’s OFZ auctions provided little support to the market (for details, see our OFZ auction monitor – available only in Russian). Trading volumes were again low at RUB 8.4 bln, with half of the total amount concentrated in the OFZ 29014 floater. Yields on most linkers declined, with those on the OFZ 52002 and 52003 dropping by 12-15 bps.