RUONIA Rate Hits 15.88% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the benchmark interest rate to which the coupons of a significant portion of floating-rate exchange-traded bonds are linked, stood at 15.88% on Tuesday.

RUSFAR ON RUB (overnight in rubles) adjusted to 15.75% on Tuesday.

RUSFAR ON CNY (overnight in yuan) was 0.24%.

RUONIA is the unsecured overnight ruble lending rate calculated by the Bank of Russia based on transactions from the top 35 banks. RUSFAR (Russian Secured Funding Average Rate), calculated by the Moscow Exchange, is the secured funding rate (repurchase agreements with a central counterparty) for different terms (ON, 1M, 3M, etc.).

The main difference between the two rates is that RUONIA is an unsecured rate, while RUSFAR is for secured transactions. Both are key indicators of the cost of money in the market and are used for floating rates in bonds.

RUONIA is calculated based on the reports of major credit institutions submitted to the Bank of Russia in accordance with Regulation No. 6406-U of April 10, 2023.

This overview was presented by Alexei Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.