The ruble is focused on the results of placement of OFZ
Tropical storm Michael, increased by meteorologists to hurricane category 4 and approaching the waters of the Gulf of Mexico has once again started to warm up oil prices, but the ruble today is not the main topic. We are waiting for host “test” (as it was called in the Ministry of Finance according to the media) of OFZ – the second time after a month break.
Interest and appetite for the ruble benchmarks is very high. It’s sort of a barometer, and a foothold in one. Treasuries of commercial banks in the conditions of low volumes of liquidity in the system need to use its working capital as efficiently as possible, therefore, to have the collateral securities on the balance sheet – not a choice but an imperative.
The mass Governor’s resignation increased subjective risk “Municipale” and, to a lesser extent, in “korporativki” (C-Bonds). Also much pressure the uncertainty of external sanctions. So real rivals OFZ virtually no. With one exception.
Against the holding of OFZ auctions on Wednesdays the placement of coupon bonds of the Bank of Russia (COBRAS) on Tuesdays, which are known to have very high declared volumes (which we believe to be the main factor not too successful placement of OFZ on last week). Yesterday was the traditional auctions of the CBR’s placement of the COBRAS – to 147 billion 234 billion and 566 billion. Visually, the Central Bank has targetirovat the maximum bet in the area of 7.95% and with given parameters to accommodate maximum waste one third of the declared volume was only one of the three subtranches second, in other cases, the share of outstanding securities has been meager.
Other things being equal OFZ, of course, is the only priority tool. Pent-up demand for it, according to our estimates, is at least 40 billion rubles in a week when the average placement of 20 billion rubles.
Meanwhile, the dollar remained near its multi-month highs, which determines the weakness of global currencies. As of 11:30 GMT, the dollar Index DXY is high at 95,40. The ruble is trading in a narrow range 66,20-66,30 visually and waits for some bright news. About the real brightness is on the horizon it is not visible, so orientirueshsya on the factors mentioned above.
“International financial center”