RUONIA Rate Hits 15.25% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the benchmark interest rate tied to the coupons of a significant portion of floating-rate bonds traded on the Russian stock exchange, stood at 15.25% on Tuesday.

RUSFAR ON RUB (overnight ruble rate) adjusted to 15.3% on Tuesday.

RUSFAR ON CNY (overnight yuan rate) was at 7.5%.

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) is the secured funding rate (repo with a central counterparty) calculated by the Moscow Exchange 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. However, both are key indicators of money market rates 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 under 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 prepared by Alexey Grischenko, Ph.D., Professor at the Department of Operational and Sectoral Management at the Higher School of Management, Financial University under the Government of the Russian Federation.