RUONIA Rate Hits 15.83% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the benchmark rate to which coupons of a significant portion of exchange-traded floating-rate bonds are linked, stood at 15.83% on Tuesday.

RUSFAR ON RUB (overnight in rubles) adjusted to 15.77% 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 from the top 35 banks. RUSFAR (Russian Secured Funding Average Rate), on the other hand, is the secured funding rate (repurchase agreements with a central counterparty) calculated by the Moscow Exchange for different tenors (ON, 1M, 3M, etc.).

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

RUONIA is calculated based on the reporting data of major credit institutions using form 0409701 "Report on operations in foreign exchange and money markets," submitted by credit institutions to the Bank of Russia in accordance with Bank of Russia Regulation No. 6406-U dated April 10, 2023.

This overview was presented by Alexey 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.