RUONIA Rate Hits 15.30% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the reference rate linked to the coupons of a significant portion of floating-rate exchange-traded bonds, stood at 15.30% on Tuesday.

RUSFAR ON RUB (overnight in rubles) was adjusted to 15.2% on Tuesday.

RUSFAR ON CNY (overnight in yuan) was 6.25%.

RUONIA is the unsecured overnight lending rate in rubles, calculated by the Bank of Russia based on transactions of the top 35 banks. RUSFAR (Russian Secured Funding Average Rate), on the other hand, is the secured funding rate (REPO with a central counterparty) calculated by the Moscow Exchange for different terms (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, however, 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 using form 0409701 "Report on Operations in Foreign Exchange and Money Markets," submitted by credit institutions to the Bank of Russia in accordance with the Bank of Russia Regulation No. 6406-U dated April 10, 2023.

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