Cbank: Russia’s OFZ bonds yield can fall by 40–80 basis pts Jul–Sep

MOSCOW, Aug 29 (PRIME) -- The yield of Russian state OFZ bonds can fall by 40–80 basis points on the quarter in July–September if inflation decelerates and the country-related risk premium is reduced, the central bank said in a statement on Monday.

“In case inflation slows down and the credit default swap (CDS)-premium for Russia decreases, the OFZ yield can fall by 40–80 basis points in the third quarter of 2016. The OFZ yield curve can continue moving downwards further on,” the authority said.

According to the central bank, CDS-premiums fell in April–June and the amount of operations grew on the back of inflation risks decline and inflation deceleration. The CDS-premium for short-term OFZ fell by 0.8 percentage points over the period to 1.9 percentage points.

The inflation tension eased as the global oil market situation improved, the ruble strengthened and the inflation expectations decreased.

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