RUONIA Rate Hits 14.92% 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 14.92% on Tuesday.

RUSFAR ON RUB (overnight in rubles) adjusted to 14.8% on Tuesday.

RUSFAR ON CNY (overnight in yuan) was 5.4%.

RUONIA is the unsecured overnight lending rate in rubles, calculated by the Bank of Russia based on transactions from the top 35 banks. RUSFAR (Russian Secured Funding Average Rate) is the secured funding rate (repo with a central counterparty), calculated by 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 are key indicators of money market rates and are used for floating rates in bonds.

RUONIA is calculated based on reports from major credit institutions using form 0409701, "Report on Operations in Foreign Exchange and Money Markets," submitted to the Bank of Russia in accordance with Regulation No. 6406-U dated April 10, 2023.

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