Daily Market Monitor: Domestic bonds were stronger on Friday as the rouble continued to appreciate

Domestic bonds were stronger on Friday as the rouble continued to
appreciate. The Central Bank’s declared tougher stance on inflation
means an improving outlook for the rouble in the short- to mediumterm,
promising further gains in rouble bonds.
The U.S. treasury market fell on the release of U.S. producer inflation
numbers and the fallout hit Russian Eurobond prices. The EMBI+
Russia Index lost 0.4% to hit 187 while Russia 30 closed at 105.5,
losing 0.75. Monday is a public holiday in the United States and we
expect Eurobond market to be calm. The consumer inflation index, to
be published this week, will be an important indicator to watch, since
a high figure would increase the likelihood of more aggressive Fed
rates hikes and, correspondingly, growing treasury yields.