FX, bonds and rates weekly

July 8-12

* The ruble weakened by 2.0% against the yuan to CNY/RUB 11.97. The reduction of support for the ruble was probably due to the end of preparations for tax payments and the announced reduction of net FX sales by the CBR. * We expect the ruble to strengthen slightly to CNY/RUB 11.8-12.0 this week amid tougher CBR rhetoric and the likely start of preparations by exporters to make dividend payments. * Global markets lacked a uniform trend, with the UST10's yield declining amid signs of a cooling US labor market. European markets were mixed. * The OFZ market weakened amid a toughening of CBR rhetoric, with yields increasing by 30-40 bps along the curve.