Halister News

(Bloomberg) -- OFZs have been under pressure recently on higher core rates, negative headlines about new sanctions being discussed by U.S., U.K. and heavy positioning, Morgan Stanley analysts say in e-mailed note.

• OFZs remain attractive carry trade in medium term
• Expects CPI to drop to 5.9% by yr-end and to 5% mid-2017 due to RUB strength and weaker growth
  • NOTE: Russia Sept. Inflation Rate Falls to 6.4% Y/y
• Tightened stop on long RUB vs CAD position; remains long for now, “but the additional risks coming from potential sanctions warrant some caution”