Auctions of the Ministry of Finance for the ruble is more important than oil

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Russian ruble on Wednesday, retreats to a basket of currencies. The dollar to the present worth of 63.30 rubles (+0.4 percent). The Euro is trading at RUB of 73.67 (+0,3%). Official rates of the Central Bank of Russia for tomorrow, June 28, 63,13 make up a RUB for the American currency and 73,60 RUB for Euro. Both estimates revised to increase, by 34 and 20 cents respectively.
Today the Ministry of Finance of the Russian Federation conducts auctions on placement of OFZ, as usual, in the middle of the week. I have repeatedly drawn attention to the fact that the Agency is becoming more flexible in terms of setting the scope of the auctions depending on market sentiment and investors ‘ attitudes to risk. Last week the buyers were offered only one issue modest volume of RUB 10 billion, it was sold out.
Today at auction two issues of 10 billion rubles each, and they are totally classic – with an average maturity and an attractive yield. While data on placement there, but I think that one of the issues for sure will be sold with oversubscription. Right now the ratio of market risk to smooth and even quiet.
Commodity market in the middle of the day looks good. Investors continue to buy after the release of the API data that reflected a sharp dip in oil reserves last week.
A barrel of Brent blend traded at $76,6 and is growing by 0.6%, a barrel of light oil WTI sold at $71,17 (+0,9%). Tonight, all market attention will be focused on the publication data US Department of energy on oil reserves and petroleum products. The average expectation of investors, according to a survey by Bloomberg, suggests the decrease in reserves of slightly more than 2 million barrels. Not the fact that the statistics of the energy coincides with the observing API, but if it did happen, the barrel can dramatically strengthen.
The US dollar will finish today’s trading in the range of 63.00-63,65, the Euro closes the day within 73,10-74,00 RUB.
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Anna Bodrova,
Senior analyst,
Alpari