Economy and Debt Markets Navigator 08/07/2024

* The ruble strengthened slightly on Friday, closing at CNY/RUB 11.97 (+0.1%), while USD/RUB perpetual futures reached the 88.71 mark (0.4%). Yuan volumes grew by 21.2% to RUB 107 bln. This week may see stronger support for the ruble amid tougher CBR rhetoric and preparations by exporters for dividend payments. That said, the reduction of net FX sales by the CBR since last Friday may play against the Russian currency. Under these conditions, the ruble may continue to fluctuate in a range of CNY/RUB 11.8-12.0. * Negativity persisted on the OFZ market on Friday. Yields grew by 20 bps on average, with those on short-dated issues surging by up to 50 bps to around the 17.3% mark and those on long-dated papers ending the week at around 15.7%. Amid heightened activity, trading volumes increased to RUB 9.4 bln during the main session and RUB 4.0 bln in the mode of negotiated deals and negotiated deals with the central counterparty. Buyers prevailed among linkers, with yields on most issues decreasing by 2-8 bps, although that on the short-dated OFZ 52002 added 12 bps.