Russian Government Bond Index Up 0.2% to 120.25 Basis Points on Monday

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On Monday, the Russian government bond index (MCXRGBI) rose by 0.2%, reaching a level of 120.25 basis points.

Below is the trading activity for the most liquid federal loan bonds:

- OFZ Series No. 26247 -0.3%;

- OFZ Series No. 26248 -0.3%;

- OFZ Series No. 26233 -0.1%;

- OFZ Series No. 26243 -0.1%.

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

The most liquid OFZ bonds are typically long-term 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 coupons (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 the predictability of coupon payments, for example, issues with maturity 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.

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