Economy and Debt Markets Navigator 05/07/2024

* The ruble weakened to CNY/RUB 11.99 (-0.7%), while perpetual USD/RUB futures reached the 88.78 mark (-0.4%). Yuan trading volumes decreased by 9% to RUB 88 bln. The CBR again slightly toughened its rhetoric by nearly ruling out the option of keeping the key rate at its current level of 16% in July while noting the possibility of its increase to above 18%. Such verbal intervention may somewhat slow the pace of ruble depreciation and help the Russian currency consolidate around the current level of CNY/RUB 12.0. * Negativity prevailed on the OFZ market yesterday amid hawkish CBR rhetoric at the Financial Congress in St. Petersburg. Yields on short-dated issues increased by up to 30 bps, while those on long-dated papers grew by up to 10 bps. Trading volumes were above average at RUB 12 bln. Linkers also weakened, with their yields rising by 4-14 bps.