RUONIA Rate Hits 15.40% on Tuesday, Affecting Floating-Rate Bond Coupons

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RUONIA, the benchmark rate linked to the coupons of a significant portion of floating-rate exchange-traded bonds, stood at 15.40% on Tuesday.

RUSFAR ON RUB (overnight ruble rate) adjusted to 15.26% on Tuesday.

RUSFAR ON CNY (overnight yuan rate) was 6%.

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 (central counterparty repo) 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, however, serve as key indicators of money market costs and are used for floating rates in bonds.

RUONIA is calculated based on the reporting data from major credit institutions submitted to the Bank of Russia in accordance with the Regulation No. 6406-U dated April 10, 2023.

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