On the Dynamics of Trading in the Government Bond Market

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The MCXRGBI government bond index fell by 0.3% on Thursday, reaching a level of 116.72 basis points.

Below is the trading dynamics of the most liquid federal loan bonds (OFZ).

- OFZ issue No. 26247 -0.1%;

- OFZ issue No. 26248 -0.3%;

- OFZ issue No. 26238 -0.2%;

- OFZ issue No. 26246 -0.1%.

The government bond index - MCXRGBI is a key indicator of the Russian debt market, reflecting the dynamics of the entire range of government securities.

The most liquid OFZ bonds are usually long-term OFZ issues with a fixed coupon (OFZ-PD), such as OFZ 26248 and OFZ 26245 with a high share in the trading volume, as well as issues with an indexed nominal value (OFZ-IN) and variable coupon (OFZ-PK), but they have different characteristics and are suitable for different purposes.

Key characteristics of liquid OFZ bonds:

1. OFZ-PD (with a fixed coupon) - the most in demand due to the predictability of coupon payments, for example, issues with redemption in 2034-2041.

2. OFZ-IN (with an indexed nominal value) - protect against inflation, but their yield is realized at redemption or sale.

3. OFZ-PK (with a floating coupon) - have high liquidity, for example, OFZ 29014, 29024, 29016.

The review was presented by Alexey Grishchenko, Doctor of Economics, Professor of the Department of Operational and Sectoral Management of the Faculty "Higher School of Management" of the Financial University under the Government of the Russian Federation.