Money Market Rates Hit New Highs Amid Increased Demand for Liquidity

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RUONIA, the benchmark rate to which coupons of a significant portion of floating-rate exchange-traded bonds are linked, stood at 15.61% on Tuesday.

RUSFAR ON RUB (overnight in rubles) adjusted to 15.65% on Tuesday.

RUSFAR ON CNY (overnight in yuan) was 0.8%.

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

The main difference between the two rates is that RUONIA is an unsecured rate, while RUSFAR is based on secured transactions. Both rates 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 reporting data of major credit institutions submitted to the Bank of Russia in the form 0409701 "Report on operations in foreign exchange and money markets," in accordance with Bank of Russia Regulation No. 6406-U dated April 10, 2023.

This overview was presented by Alexey Grishchenko, Ph.D., 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.