The Russian bonds trade mixed on Friday, as investors awaits Doha talks this Sunday. The benchmark 10-year bonds yield, which is inversely proportional to bond price tad rose 0.43 pct to 9.28 pct and 3-year bonds yield dipped 0.10 pct to 9.520 pct 1145 GMT.
The officials for oil rich countries are expected to meet on Sunday, 17th April at Doha, Qatar to conclude a freeze on the levels of crude oil productions. The Brent crude oil, a global benchmark for Russia's main export, was lifted on hopes that key oil producers could agree on a production freeze this Sunday.
But, the Brent crude oil futures is hovering around $43.00 mark, down from early high of $44.50 after Iran’s oil minister said on Wednesday that he will not attend the Doha oil talks at the weekend but an Iranian representative will be there, underscoring the growing mixed views that key oil producers could agree on a production freeze this Sunday. The International benchmark Brent futures fell 0.87 pct to $43.44 and West Texas Intermediate (WTI) tumbled 1.01 pct to $41.08 by 1000 GMT.
“Our expectations for the meeting are low. Although an agreement on production caps is likely to be reached, it will probably not include any concrete figures or obligations, let alone any sanctions to be imposed in the event of non-compliance,” said Commerzbank.
We foresee that if Doha meet fails to implement the expected, crude oil prices will tumble again, pushing bond prices further up.
