Russian Government Bond Index MCXRGBI Up 0.3% on Thursday

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On Thursday, the MCXRGBI Russian government bond index rose by 0.3%, reaching a level of 118.93 basis points.

Below is the trading dynamics of the most liquid Federal Loan Bonds (OFZ).

- OFZ issue No. 26247 +0.3%;

- OFZ issue No. 26248 +0.2%;

- OFZ issue No. 26238 +0.1%;

- OFZ issue No. 26246 +0.1%.

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

The most liquid OFZ bonds are typically long-term OFZ issues with fixed coupons (OFZ-PD), such as OFZ 26248 and OFZ 26245, which have a high share in 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 fixed coupon) - the most in-demand due to predictable coupon payments, for example, issues maturing in 2034-2041.

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

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

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