Russian Bonds Rally as Goldman Says Rate Cuts Aren’t Priced in
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Russian bonds gained, pushing yields to the lowest in five weeks, as Goldman Sachs Group Inc. and Credit Suisse Group AG said local-currency debt didn’t reflect the outlook for interest-rate cuts.
Yields on five-year bonds known as OFZs fell 43 basis points to 13.04 percent as Credit Suisse said borrowing costs would be cut by as much as 300 basis points at a policy meeting on Friday. That’s deeper than the 100 basis-point cut projected in a Bloomberg survey. Bank of America Corp. recommended buying OFZs due in February 2019 before the decision. The ruble rose for a second day as Brent crude advanced.