Ignatyev to lowering rates in July, more freedom ruble
Yesterday again a few comments made by the head of the Central S. Ignatiev. He actually promised another reduction in interest rates in July. Given that yesterday also praised Rosstat inflation since the beginning of June in the amount of 0.4% (this is 2 times lower than in the past year), such a move by the regulator would be quite logical. Still, while Mr. Ignatyev expressed concerns about the unpredictability of the budgetary costs: if the lion's share of liquidity again traditionally lead to the economy at the end of the year, it could spur price rises. This prevents the Bank of Russia to reduce rates more quickly.
The head of the Central Bank made a duty clause that does not exclude the weakening ruble, but now sees no prerequisites for this. Mr. Ignatyev also said that the Central Bank intends to gradually reduce its presence in the foreign exchange market, the ruble to become even more free and floating. Unfortunately, no details were not disclosed. We can assume that it is, for example, that less than buy /sell at the next step and /or increase the amount of steps. Recall now the Central Bank buys about 700 million dollars, then making the We for 5 cents (now stands at 36.40 rubles to the basket, probably something like he did would we be closer to the upper boundary of corridor ).
On the money market yesterday issued a volatile day: in a dense bundle with oil prices bivalyutnuyu basket pump in the range of 36.85-37 rubles (close to the bottom border). By the way, yesterday, Prime Minister of Russia Vladimir Putin said that the authorities are counting on the continued rise in oil prices. The rates were stable yesterday, overnight (about 7%), however, the tax period has not yet ended, so we can not exclude that more liquidity can appreciate at some point.
Moscow placed bonds by 20 billion rubles
investors showed great interest to a relatively longer release of the Moscow-62 (Duration 3.5 years), because This paper suggests a greater price apsayd in the case of lower interest rates. It sold nearly 13 billion rubles (about 65% of the loan) at a yield of 15.90%. Slightly worse than the auction took place in Moscow-61 (Duration of 3 years): added was approximately 7.3 billion rubles. (about 48.5% stated volume), yield - 15.79%.
In general, however, in our opinion, the auction went very well: hardly anyone expected that it will be possible to sell at a time all the 35 billion rubles. Investors got a good prize (especially in the 62 th edition), which will be fully realized as the inclusion of securities in the repo list Securities and Quotation List A1. For comparison, the closest Duration Issue Moscow-54 is now trading around 15.60%.
In general, the bond of 1-st tier yesterday enjoyed good demand: most of the quotations of securities had grown up by around 15-20bp.
| Authorize and appreciate the story;;
Your grade will be the first!
|
Analyst Ratings
|
Russian market to build on the success must overcome the local maximum of 1030 points on the MICEX index
Mid-term descending trend continues to dominate, perhaps today the closing of the Russian market in red
Net profit Dalsvyaz for 1 st quarter of 2009 under IFRS grew to 828 million rubles
FINAM presented a master class on the trade system
Yesterday, a pair of Euro /dollar traded under pressure and reached to the bottom of the American session close of 1.3887
The parliament is planning to send an additional contingency fund of 300 million UAH
The global trend is still down in the near future, the MICEX and RTS indices may again test the level of 900 points
In the event that large investors would not support action Sberbank, is likely to further reduce the quotations
This evening, the Russian market will continue to decline rather than grow or move in the outset
Bonds' first line 'yesterday enjoyed good demand
Ignatyev to lowering rates in July, more freedom ruble
Yesterday again a few comments made by the head of the Central S. Ignatiev. He actually promised another reduction in interest rates in July. Given that yesterday also praised Rosstat inflation since the beginning of June in the amount of 0.4% (this is 2 times lower than in the past year), such a move by the regulator would be quite logical. Still, while Mr. Ignatyev expressed concerns about the unpredictability of the budgetary costs: if the lion's share of liquidity again traditionally lead to the economy at the end of the year, it could spur price rises. This prevents the Bank of Russia to reduce rates more quickly.
The head of the Central Bank made a duty clause that does not exclude the weakening ruble, but now sees no prerequisites for this. Mr. Ignatyev also said that the Central Bank intends to gradually reduce its presence in the foreign exchange market, the ruble to become even more free and floating. Unfortunately, no details were not disclosed. We can assume that it is, for example, that less than buy /sell at the next step and /or increase the amount of steps. Recall now the Central Bank buys about 700 million dollars, then making the We for 5 cents (now stands at 36.40 rubles to the basket, probably something like he did would we be closer to the upper boundary of corridor ).
On the money market yesterday issued a volatile day: in a dense bundle with oil prices bivalyutnuyu basket pump in the range of 36.85-37 rubles (close to the bottom border). By the way, yesterday, Prime Minister of Russia Vladimir Putin said that the authorities are counting on the continued rise in oil prices. The rates were stable yesterday, overnight (about 7%), however, the tax period has not yet ended, so we can not exclude that more liquidity can appreciate at some point.
Moscow placed bonds by 20 billion rubles
investors showed great interest to a relatively longer release of the Moscow-62 (Duration 3.5 years), because This paper suggests a greater price apsayd in the case of lower interest rates. It sold nearly 13 billion rubles (about 65% of the loan) at a yield of 15.90%. Slightly worse than the auction took place in Moscow-61 (Duration of 3 years): added was approximately 7.3 billion rubles. (about 48.5% stated volume), yield - 15.79%.
In general, however, in our opinion, the auction went very well: hardly anyone expected that it will be possible to sell at a time all the 35 billion rubles. Investors got a good prize (especially in the 62 th edition), which will be fully realized as the inclusion of securities in the repo list Securities and Quotation List A1. For comparison, the closest Duration Issue Moscow-54 is now trading around 15.60%.
In general, the bond of 1-st tier yesterday enjoyed good demand: most of the quotations of securities had grown up by around 15-20bp.
Your grade will be the first!
Analyst Ratings
Russian market to build on the success must overcome the local maximum of 1030 points on the MICEX index
Mid-term descending trend continues to dominate, perhaps today the closing of the Russian market in red
Net profit Dalsvyaz for 1 st quarter of 2009 under IFRS grew to 828 million rubles
FINAM presented a master class on the trade system
Yesterday, a pair of Euro /dollar traded under pressure and reached to the bottom of the American session close of 1.3887
The parliament is planning to send an additional contingency fund of 300 million UAH
The global trend is still down in the near future, the MICEX and RTS indices may again test the level of 900 points
In the event that large investors would not support action Sberbank, is likely to further reduce the quotations
This evening, the Russian market will continue to decline rather than grow or move in the outset