Their analysts also recommends long positions in Russian bonds in an e-mail note
Making the case that RUB offers a high carry/volatility ratio, and that its seasonal weakness is coming to an end. They also say that policy uncertainty will weigh in on the USD as well.
With regards to Russian bonds, they mention that "Russia still has the right story for the fixed income market: low and steady growth, downward trending inflation and a cautious central bank".
Morgan Stanley targets a short position in USDRUB to 56.50, with a stop of 61.00. The other trade is to go long (unhedged, since they suggest that RUB will strengthen so as to earn the currency appreciation as well) Feb 2027 federal loan (OFZ) bonds with a 7.5% target yield.
USDRUB is currently trading at 59.09.
