FX, bonds and rates weekly

By week end, the ruble had weakened by 0.03% against the dollar to USD/RUB 60.6. Ahead of the CBR’s key rate decision on Friday, we expect the ruble to fluctuate within a range of USD/RUB 60-62. Negativity predominated on global debt markets last week. Yields on the UST10 and 10Y German Bunds increased. The CBR’s key rate meeting will be the main event this week. We expect the regulator to narrow the step and cut the rate by 50 bps to 7.5%. The OFZ market showed a positive trend in the first half of the week, but then corrected downward following the Minfin\'s statements about its readiness to return to the primary market in September.