Rouble flat ahead of treasury bond auction

Credit: REUTERS/MAXIM SHEMETOV

The rouble was largely flat in early trade ahead of Russia's weekly treasury bond auction on Wednesday as traders awaited a European Central Bank meeting later this week that could give support to Russian bonds.

MOSCOW, Sept 11 (Reuters) - The rouble was largely flat in early trade ahead of Russia's weekly treasury bond auction on Wednesday as traders awaited a European Central Bank meeting later this week that could give support to Russian bonds.

At 0746 GMT, the rouble was 0.01% weaker against the dollar at 65.42 RUBUTSTN=MCX while against the euro it had gained 0.1% to trade at 72.2 EURRUBTN=MCX.

The European Central Bank is due to convene on Thursday and is expected to cut interest rates and introduce new stimulus measures in efforts to offset the effects of the trade war between the United States and China.

Investors are awaiting the meeting as monetary easing could lead to increased interest in Russian bonds.

"Strong movements are unlikely for the moment - traders prefer to wait for the results of tomorrow's ECB meeting which is expected to include a clarification of monetary stimulus plans for the economy," said Anton Startsev at broker Olma.

Russia's finance ministry was due to hold its weekly OFZ treasury bond auction later on Wednesday. The bond serves as a gauge of global market sentiment toward Russian assets.

U.S President Donald Trump sacked his hawkish national security adviser John Bolton on Tuesday, pushing the rouble up to 65.24 against the U.S. dollar, its highest since Aug. 14, amid hopes of an improvement ties between Moscow and Washington.

Russia has since said the reshuffle is unlikely to change its relations with the United States.

Brent crude oil LCOc1, a global benchmark for Russia's main export, was up 0.74% at $62.84 a barrel.

Russian stock indexes were up.

The dollar-denominated RTS index .IRTS was up 0.44% to 1349.9 points. The rouble-based MOEX Russian index .IMOEX was 0.54% higher at 2802.45 points.

For Russian equities guide see RU/EQUITY

For Russian treasury bonds see 0#RUTSY=MM

(Reporting by Vladimir Abramov Writing by Tom Balmforth Editing by Mark Heinrich)

((tom.balmforth@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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